My understanding is that ArcGIS Server is licensed based on the number of cores. I have seen white papers describing this but can't find them at the moment.
There are 2 aspects to this. The first is what is legal and the second is what actually occurs. I believe that if you install ArcGIS Server on a machine with X cores then it will use X cores regardless of what you actually licensed. In other words, it is up to you to make sure that you are in compliance with the terms and conditions for using the software.
I believe that if the machine has X cores then you are supposed to license X cores. It starts with 4 and then you can add multiples of 2 (or something like that).
At one point, ESRI discussed adding checks for core compliance in the software but I do not believe that they have done that.