Earlier quoted context omitted.
Depending on your regulatory environment, it can be cost-effective to not have to maintain your own data center with 24/7 security response, environmental monitoring, fire suppression systems, etc. (of course, the majority of businesses are probably not interested in things like SOC 2)
This argument comes up a lot, but it feels a bit silly to me. If you want a beefy server you start out with renting one. $150/month will give you a server with 24 core Xeon and 256GB of RAM, in a data center with everything you mentined plus a 24/7 hands-on technician you can book. Preferably rent two servers, because reliablity. Once you outgrow renting servers you start renting rack space in a certified data center…
What's the bandwidth and where can I rent one of these??