Intel's Data Center Group, which sells processors and other silicon for data centers, produced $6.5 billion in sales, up 10% year-over-year, but fell short of analyst estimates of $6.66 billion. Intel said that the annual increase was due to increased demand for on-premise servers for corporations and governments. Intel is in a period of massive capital expenditure as it spends $20 billion this year, including on a new semiconductor factory in Arizona.