Intel (NASDAQ:INTC) has announced a new data center chip that can deliver more than twice the amount of computing power of existing chips. The announcement comes as the industry seeks to reduce its electricity consumption, following pressure from lawmakers and activists.

Data centers, which power the Internet and online services, are huge consumers of electricity. Technology companies are facing increasing demand for greater efficiency in their semiconductors and products.

In 2022, Intel announced that it was committed to achieving net zero greenhouse gas emissions by 2040.

On Monday (August 28), Intel said its soon-to-be-released Sierra Forrest chip will be able to perform 240% better per watt than its current generation of data center chip, according to Reuters . This is the first time that the North American company discloses its efficiency figures.

The tech giant’s announcement of a chip focused on energy efficiency follows its rival, Ampere Computing (AC), being first to market.

US-based AC, founded by former Intel executives, has found success in launching chips that handle the work of cloud computing more energy-efficiently.

Along with Intel, AMD has also released a similar energy-efficient chip to compete with AC, which is expected to be released in June.

Intel reported extremely disappointing results for the first quarter of this year, with a whopping 133% year-on-year drop in earnings per share. The company reported a nearly 36% decline in revenue year-over-year to $11.7 billion.

The tech giant hopes to regain some of the lost market share with the launch of its Sierra Forest chip. AC and AMD now control more of the data center market than Intel.

In August, Intel announced that it had mutually agreed with Tower Semiconductor to terminate its previously publicized agreement to acquire the Israeli semiconductor company.

According to GlobalData’s business database, the deal was terminated due to the inability to obtain the regulatory approvals required by the merger agreement.

The US company intended to acquire Tower Semiconductor to “accelerate its path to becoming a major provider of foundry services and capacity globally,” the research firm said.

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