AppleInsider reports that Apple is planning to refresh its range of server products in the next few weeks. The new Xserve models are said to follow similar footsteps as the recent Mac Pro releases gaining Nahalem based processors.
AppleInsider adds that models will likely use "Gainestown" and "Bloomsfield" Xeon processors.
New models, should they follow the same configuration format, would therefore include a single processor model capable of accepting 2.66GHz, 2.93GHz, and 3.2GHz quad-core Bloomfield chips and a dual-pocessor model that would take two 2.26GHz, 2.66GHz, 2.8GHz, or 2.93GHz quad-core Gainestown chips.
"Gainestown" is also available in 2.4GHz, 2.53GHz, and 3.2GHz variants, though Apple has expressed little interest in these parts thus far.
AppleInsider refers to shipping times as a good indication of an imminent update with shipping estimates reducing from 1 - 2 weeks to 5 to 7 days in the last few days.