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And most importantly, it needs a fast internet connection with fast upload speeds. (Uncommon on normal internet service plans.)
+1 on your upload internet speed can certainly be a bottleneck for your server
I'm not aware of any games where the server would utilize a GPU, while a large array of GPUs can and are used in some supercomputers, it's for specilized processes. And yeah not having to buy a GPU for a server saves a lot of cash, but then you need a specilized processor and typically a motherboard to handle it that more than make up for the cost and then some.
It all really comes down to how many people you want on your server. Want 6 people? You can run that on an average home PC, want 16 people? Then you need a high upload speed internet connection and a very high end pc with extra ram and a fast SSD. Want to host 36-64 players? You need a specilized server pc, or even a dedicated server rack, with xeonon processor(s) a raid array of SSDs and 128+GB of fast DDR4 ram. Not to mention a very high end buisness server scale ISP service.
That is 100% not true.... my server with a lot of people wwas using well over 8 gigs, since we went private with less people it is using about 4 gigs.... once they get finished with a larger map and servers that have been up for some time the RAM usage with skyrocket. Myself and my small group of friends run our own dedicated servers on our own server on google fiber.... and depending on the game you can end up using upwards of 20 gigs in extreme cases just for the server... it's a case by case basis buit this game is certainly going to be high RAM usage in the end once they add more content.
The most important factors are CPU, RAM and Storage (SSD's being better). Most ofd those dedicated server farms use VM's on Xeon platforms that will split a server or server cluster into multiple machines....
TL;DR you're wrong about half of what you said.
You'd be better off with an i7 than a Xeon in the game's current state.
I'm currently hosting three 30 pop ARK servers using Ubuntu Server 16.04, with an i5 proc and 12 Gb RAM. Helps that I have 120/10 cable internet. No issues. Try that on a Windows box (with same resources) and see what happens.