[aborsy]

One issue is uptime. Sometimes the power goes off and you need a ups. If you have LUKS enabled, you need to be physically near the server to restart it.

If you use VMs, you have to update and maintain the hypervisor. You update it and it may break. You need to take care of networking, firewalls, snapshoting, etc. If you use AWS, there is a lot of external services available, eg, add block storage as needed, create a S3 bucket and connect it, etc. Static IP address is another good thing.

[speedgoose]

You can configure your servers to start a small SSH server at boot to receive the LUKS keys remotely.

I use LUKS on baremetal, and even some virtual servers, without much issues. The setup is a bit more complex than average though.