I think it's a combination of scripting plus npc/creatures animation or AI, but in any case they will chew up your CPU core so it doesn't matter one bit how fast your graphics card is or how many cores you have.
If you wait 10 years until they come out with 5 GHz 1000-core processors, then it will help only slightly.
These one aren't so bad but they do add up quickly. All combined they dropped my fps from 50 to around 25, i.e. a 20 ms hit. (I love these mods so I just live with it.)
-Animated Morrowind
-Animated Morrowind II
-Animated Morrowind Expanded
-Atmospheric Sound Effects
-Better Music System
-Starfire NPC Addons
-Starfire over Telvanis
And I also ran across this nasty one today:
-Fireflies Invade Morrowind - dropped my fps from 18 to 13, i.e. a (1/13 - 1/18) = 21 ms hit.
Turning on all these mods will cost about 40ms per frame, in other words I would be at 25 fps even if Morrowind wasn't drawing anything or doing anything but running these mods!
I haven't measured this exactly but it is pretty bad, at least 10 ms I'd guess:
-The Wilderness Mod
I have no idea what to do about this problem.
Maybe some mod scripts can be rewritten to improve efficiency?
Are there default AI scripts that can be optimized?
Maybe there will be an MCP fix to process scripts more efficiently