Abstract Definition . Let $Rep(G)$ be the abelian category of smooth complex representations of our $p$-adic group $G$. The Bernstein center is the endomorphism ring $\mathfrak Z(G)$ of the identity functor of $Rep(G)$. So it acts on any smooth representation, and this action commutes whithwith any $G$-morphism.
Spectral realization . By Schur's lemma (which holds in this context), $\mathfrak Z(G)$ acts on any irreducible representation $\pi$ via a character $\theta_\pi:\mathfrak Z(G)\longrightarrow \mathbb C$. This is sometimes called the "infinitesimal character" of $\pi$, by analogy with the archimedeanArchimedean situation, although there is nothing "infinitesimal" here. We get in this way a realization of $\mathfrak Z(G)$ as an algebra of continuous functions on the smooth dual $\hat G$ of $G$ equipped with the Fell topology.
SofarSo far, nothing deep. Now, two major achievements in the representation theory of p-adic groups are
The simplest example is that of a compact $G$ (ege.g. the kernel of the norm map in a division algebra). In this case, $\hat G$ is discrete and the center is a product of copies of $\mathbb C$ indexed by the set of classes of irreps. The next example is that of a compact-mod-center $G$ (ege.g. the unit group of a division algebra). In this case there is an action of the group $\Psi(G)$ of unramified characters of $G$ on $\hat G$. Note that $\Psi(G)$ is naturally an algebraic torus over $\mathbb C$ because $G$ mod its maximal compact subgroup is a free abelian group of finite type. Now, connected components are the orbits of $\Psi(G)$, and the topology is the homogeneous space topology. In particular each such orbit carries a natural structure of an algebraic variety over $\mathbb C$. Finally, $\mathfrak Z(G)$ is the direct product of the ring of regular functions on these orbits.
In particular, connected components are labeled by conjugacy classes of $\Psi(M)$-orbits in $Cusp(M)$. Suppose $G$ is split for simplicity. A particularly interesting component is that which corresponds to the $\Psi(T)$ orbit of the trivial character of $T$. Its contribution to $\mathfrak Z(G)$ is isomorphic to $\mathbb C [X(T)]^W$. This component contains the unramified representations and the action of $\mathbb C[X(T)]^W$ on each such representation is given by its Satake parameter. In fact the corresponding connected component of $\hat G$ is the set of irreps that have non-trivial invariant under an Iwahori-subgroup, and one recovers the fact that the center of the Hecke-Iwahori algebra identifies with $\mathbb C[X(T)]^W$. Finally, note that this ringlooksring looks like a "group version" of the center of an enveloppingenveloping algebra, so the analogy with the archimedeanArchimedean context is even deeper than expected.
The first point is that the PLancherelPlancherel measure is supported in the tempered spectrum. The latter decomposes as a disjoint union of infinitely many connected components in a similar fashion to the full smooth dual, except that now one considers $\Psi_u(M)$-orbits of discrete series, where $\Psi_u(M)$ now denotes unitary unramified characters (a compact torus inside $\Psi(M)$). So each component is a quotient of some homogeneous space under some $\Psi_u(M)$. The second point is that on such a tempered component, the Plancherel measure is absolutely continuous wrtw.r.t. to the natural Lebesgue measure, and in fact given by some rational function. The precise computation of this rational function is not given by Harish Chandra, and in fact I dontdon't know if it is known in general (maybe okOK for classical groups).
Applications in global context In the Langlands-Kottwitz approach to counting points on Shimura varieties in hyperspecial level, a certain spherical function (depending on the Shimura datum) has to be plugged in the Trace formula. In Iwahori level, work of Haines, Rapoport, Kottwitz shows that one should plug an element of the centre of the Iwahori-Hecke algebra. They then conjectured that similar phenomena should happen in deepeerdeeper level.