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You can rent a full 42U rack in a colocation center for ~$1500/mo easily. They'll handle all of that stuff, including redundant power and redundant internet.

Of course self-hosting on real hardware is not quite as simple or cheap as GP made it out to be. But everything in your post can be solved with simple fixed pricing, which is still the main point: there are no dangers of wildly variable pricing or accidental massive bills as there are with cloud hosting providers.