Performance conserving method for reducing power consumption in a server system

A method for managing power in a data processing system having at least one processor component and a memory component, comprising:

• determining a power budget for the system;
• determining a predicted level of activity for the processor and memory components;
• based on said predicted level of activity, allocating a corresponding portion of the power budget to the processor and memory component;
• determining an activity limit for each processor and memory component based on the corresponding allocated portion of the power budget;
• and
• monitoring the activity of the processor and memory components wherein monitoring an activity limit includes monitoring a processor performance monitor configured to count the number of instructions dispatched during a timing interval, and, responsive to determining activity in excess of a component's corresponding activity limit, constraining the activity of the component, wherein constraining activity comprises preventing the processor from dispatching additional instructions or constraining the rate of dispatching instructions until a current timing interval expires.