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Alright, well i wasn't experienced with any so i didn't know what the hosting companies uses.
"I was thinking of buying servers that most hosting company uses to let people rent their dedicated servers."
Generally hosting companies will use rack-mountable servers from the likes of HP, Dell, IBM etc.
Building a standard PC would be much more appropriate, I have no clue as to you would want an expensive, noisy rack-mounted setup for a single machine in your home?
Hmmm, i'm thinking of buying a rack server. Though I have a basement. But I'm willing to buy any thing that can make a server. Rack servers or build your PC thing.
Keep in mind you will need to buy a rack to go with a rack-mounted server, which is more money to spend.
With the desktop case it will be very quiet, and have much lower temperatures due to the bigger space (vs 1U/2U chassis), etc.
Plus, in the future if you don't need it anymore, throw a GPU in it and you've got a gaming rig just like that. You just don't get much flexibility with a rack-mounted setup.