ThereIn general, chunks only 'update' when they are loaded, and they are only loaded when a player is in that chunk.
However, there is a bukkit plugin called 'Forever A-load' you can get for a bukkit enabled server that can enable certain chunks to always be active so things like wheat will grow, redstone will always be active and the like. On a normal server however the world is only active around the players when they are logged in (and where they are logged in)