Microsoft's xCloud cloud gaming platform has been in preview for quite some time. Allowing many to play a select amount of games available on the Xbox directly on their mobile device, Microsoft plans on launching the product sometime later this year.
According to The Verge, a source familiar with Microsoft's plans for xCloud tells them that "testing has already begun on upgraded xCloud servers, and that Microsoft is even experimenting with dedicated PC server blades for streaming PC games over xCloud."
They also state that Microsoft will be using Xbox Series X hardware in their xCloud servers by next year. Since the next-gen consoles are packing some serious firepower, it makes sense that Microsoft would attempt to use that hardware to run games on their xCloud platform.
Along with using Xbox Series X hardware, servers built with PC dedicated components will most likely be used to stream PC games to the xCloud streaming platform, opening up many ways Microsoft can utilize xCloud throughout their products. It could also "lead to Xbox Game Pass for PC games being available through the service."
Microsoft is also testing a PC client for their xCloud streaming service, which will hopefully be available to the masses at launch.