Apple today updated its Xserve lineup with Intel Nehalem based Xeon processors and next generation system architecture. The Xserve are now available with up to two 2.93Ghz Intel Xeon processors and option of selecting a low-power solid state drive along with up to 3TB of internal hard drive storage. According to Apple, the new Xserve offers up to 89 percent improvement in performance per watt over previous generation Xserve system.

“The Xserve is the best workgroup server for our education, business and creative customers,” said David Moody, Apple’s vice president of Worldwide Mac Product Marketing. “With up to twice the performance, better power efficiency and an innovative SSD drive option, this is the best Xserve we’ve ever made.”

By using three channels of 1066MHz DDR3 ECC memory Xserve delivers up to 2.4 times the memory bandwidth while cutting memory latency up to 40 percent. Xserve also delivers 19 percent reduction in idle power use by using high efficiency power supplies and intelligent thermal management system. Xserve’s industry-leading storage capabilities include a 128GB SSD boot-drive option that requires a fraction of the power of a hard disk and delivers up to 48 times faster random access times without occupying a drive bay.

The base configuration of Xserve is priced $2,999 and it comes with single 2.26GHz Quad-Core Xeon 5500 processor, 3GB DDR3 EEC RAM, 160GB hard drive, dual Gigabit Ethernet, internal graphics with Mini DisplayPort, two FireWire 800 ports, three USB ports and unlimited client license for Mac OS X Server version 10.5 Leopard. However, if you plan to configure top of the line Xserve it could easily cross $10,000. You can get more information about Xserve on Apple’s website.