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CPUs typically operate at a voltage which is higher than what is strictly required, using voltage margins to account for process variability and anticipate any combination of adverse operating conditions. However, these worst-case scenarios occur rarely, if ever, thus the operating voltage is overly pessimistic resulting in excessive power dissipation which leads to decreased performance under power capping. In this paper, we investigate the impact of reducing voltage margins beyond the nominal level on the efficiency of CPU power capping mechanisms, for three commercial systems, two Applied Micro ARMv8 micro-servers (X-Gene2 and X-Gene3) and an Intel x86-64 (Xeon E3). We show that CPU power capping at reduced voltage margins compared with Intel’s RAPL and Dynamic Frequency Scaling (DFS) mechanisms results in performance improvement by up to 64 and 24 percent on average, respectively. In …