In it's current form I don't think so. It's not optimized for DC/enterprise. It certainly has potential though.

That's more of a 'if you have everything else in the data center, then you can have this too for consistency's sake' than something to move traditional data center workloads to.

The better example of ARM entrance to the datacenter is AWS Graviton. Apple could learn from Graviton to make its ARM cores significantly more datacenter friendly.

That said, I don't see Apple doing this unless they see it as a significant opportunity.

Apple hasn't seen fit to do that for their own data center parts yet (hence the job postings for qemu-kvm, and the xcode cloud running on x86_64 in a VM).

I don't think data center parts are on their radar at all.

For M1 Macs, isn't it everything but the ARM cores that is not datacenter-friendly - the memory capacity, the IO options, the system form factors?