Dubbed "MareNostrum," the supercomputer employs a cluster of 2 520 eServer BladeCenter JS20 systems running the Linux operating system.
IBM expects it to be the first supercomputer to attain a top 10 ranking using blade server technology.
MareNostrum is being built by IBM and the Spanish government for scientific and industrial research into the human body, meteorology, environment and industrial processes.
Currently located at an IBM technical centre in Madrid, the system is due to be moved to its permanent home at the Polytechnic University in Barcelona by the end of the year.
The system currently comprises 3 564 PowerPC processors, but will have 4 564 processors by the time it is fully completed, IBM says.
IBM expects the computer's peak performance to reach 40T floating point operations per second (flops).
At its current configuration the computer already reached a sustained performance of 20,53T flops, with peak performance of 31,36T flops, IBM says.
MareNostrum's unveiling Friday comes just days before the Top500 Supercomputer Sites list is released on Tuesday. IBM hopes the list will confirm its ranking predictions.
The company says that, in addition to allowing it to achieve performance goals, MareNostrum's use of blade technology has lead to significant cost savings.
The system's cost or savings estimates were not given, however.
"This is certainly a cheaper technology to pull together and will help advance Spain as a research and development centre," says IBM deep computing sales manager, Caroline Isaac.
IBM also lauded its size. It occupies a floor area of 160 square metres, which is 22 times less than the currently-ranked number-one supercomputer Earth Simulator.
It requires less energy than other supercomputers - 600 kilowatts - and does not require additional cooling systems, IBM adds: "It does not require water cooling, and, in terms of total cost of ownership, that is as cheap as it gets," Isaac says.
MareNostrum has already received ample attention from the scientific community, IBM adds.
Scientists are hoping to use the supercomputer for research into the life sciences and health care, including studies in environmental changes, the human genome and natural disasters.
Industrial and management processes for business applications in the aerospace, automobile and pharmaceutical industries are also anticipated.
"There is certainly room for industrial outreach and scientific partnerships," Isaac concludes.
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