Table of contents
What is a custom dedicated server?BenefitsCommon customizationDo you really need?CostServer acquisitionHow to set upFAQsNext stepsAdditional resources
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Dedicated Server → Custom Server Guide

Custom dedicated servers: what they are, do you really need one, and how to set it up

Some workloads just don’t play well with shared infrastructure. Whether it’s a high-traffic ecommerce site, a real-time analytics app, or a secure HIPAA-compliant system, standard hosting can hit limits fast. That’s where a custom dedicated server enters the picture.

Let’s break down what a custom dedicated server actually is, when you should consider one, and how to get started.

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What is a custom dedicated server?

A custom dedicated server is a single-tenant physical machine you can configure from the ground up—CPU, RAM, storage, OS, and software stack. Unlike shared or VPS hosting, all resources are yours and yours alone. There’s no noisy neighbor problem, and no limits on what you can install, tweak, or optimize.

You can rent a dedicated server from a provider or set one up on-prem using your own hardware. Either way, the key is customization: tailoring the system to your unique performance, security, and scalability needs.

Benefits of a custom dedicated server

Dedicated servers are already high-performance by nature. Add customization to the mix, and you get:

  • Enhanced performance – No shared resources means predictable speed and throughput
  • Total control – Root/admin access to OS, software, and security policies
  • Scalability – Easy to grow vertically (more cores, more RAM, more disks)
  • Tighter security – Physically isolated, with customizable firewall and compliance controls
  • Increased reliability – Fewer bottlenecks, less downtime, more control over failover

Common customization options

You don’t need to be a hardware engineer to configure a custom dedicated server, but it helps to know your options.

Hardware

These are all commonly supported when renting a server from modern providers:

  • Processors: Modern machines use Intel Xeon Gold CPUs—reliable, multi-core chips with enough power for web hosting, databases, video processing, and AI inference workloads.
  • RAM: Custom servers typically start at 32–64GB ECC RAM, but can scale to 128GB+ for heavy applications.
  • Storage: SSDs are the baseline now. Look for NVMe if you want max IOPS. RAID 1 or RAID 10 setups are common for redundancy and performance.
  • Networking: 1Gbps is standard; 10Gbps uplinks are available for bandwidth-heavy apps like streaming or backups.
  • RAID: Most hosts offer hardware RAID options—RAID 1 (mirroring) and RAID 10 (striped mirrors) are ideal for performance + redundancy.

Software

Your stack, your rules.

  • Operating systems: Choose from Linux (Ubuntu, AlmaLinux, Debian, etc.) or Windows Server editions. Popular images are prebuilt and ready to deploy.
  • Control panels: Use cPanel, Plesk, or InterWorx to simplify hosting, DNS, and site management.
  • Virtualization platforms: Options like KVM and VMware let you run multiple VMs or containers on the same physical box.
  • Applications: Install and configure LAMP/LEMP stacks, Node.js, Docker, PostgreSQL, Redis, or any workload you need to support.

Do you really need a custom dedicated server?

Not everyone needs a custom bare metal setup, but for certain workloads, it’s non-negotiable.

You might need one if:

  • You run an ecommerce store with thousands of SKUs or flash sales.
  • Your web app serves real-time data to thousands of users simultaneously.
  • You handle sensitive data and require HIPAA, PCI, or SOC 2 compliance.
  • You run large-scale AI inference, video rendering, or database crunching
  • You’re hitting resource ceilings on VPS/cloud hosting and need isolation

On the other hand, if you’re running a small WordPress site with modest traffic, a custom server is probably overkill.

Cost: cheapest isn’t always best

Here are some of the most widely used database servers:

Renting a dedicated server starts around $100/month for basic configurations and scales into the $1,000+/month range for premium setups with 10Gbps ports, 1TB+ RAM, or GPU add-ons.

Buying your own hardware might seem cheaper long-term, but factor in:

  • Power and cooling
  • Colocation or in-house data center space
  • Hardware maintenance and lifecycle upgrades
  • Downtime risks if hardware fails

Going cheap—especially on RAM, disks, or network hardware—can cost more later in performance bottlenecks, system crashes, or complicated migrations to a better machine. It’s better to size for your actual workload now (plus immediate anticipated growth) and scale later than to cut corners on day one.

Server acquisition: how to get one

There are two main ways to get a custom dedicated server, each with its pros and tradeoffs.

Option 1: Rent from a hosting provider

For most users, this is the smarter move. You can customize your server during checkout or request specific specs via support.

Perks include:

  • Fast provisioning (often same-day)
  • Managed or semi-managed options
  • 24/7 support and hardware replacements
  • Security hardening, DDoS protection, and backups available

You don’t need to worry about rack space, cooling, or sourcing parts—just focus on your software and users.

Option 2: Build or colocate your own server

Power users and enterprises with extra resources may choose to build custom machines with off-the-shelf or enterprise-grade parts (e.g., from Supermicro or Dell). You’ll need to:

  • Fast provisioning (often same-day)
  • Managed or semi-managed options
  • 24/7 support and hardware replacements
  • Security hardening, DDoS protection, and backups available

This path gives you total control, but also total responsibility.

How to set up a custom dedicated server

Even if you’re renting from a hosting provider, setting up your custom server takes a bit of planning. These steps will guide you through the essentials.

  1. Define your workload: Decide what your server will be used for—hosting websites, running databases, video streaming, or AI inference. This determines how much CPU power, RAM, storage, and bandwidth you’ll need.
  2. Select hardware specs: Choose a CPU with enough cores for your workload, enough RAM to avoid memory bottlenecks, and storage (SSD or NVMe) sized for your data needs. If you expect high traffic or big files, opt for at least a 1Gbps connection and consider RAID for redundancy.
  3. Choose your OS: Most users go with Linux (Ubuntu, AlmaLinux, or Debian) for flexibility and cost savings, but Windows Server is available for .NET apps or specific enterprise software. Make sure your chosen OS supports all the apps you plan to run.
  4. Configure RAID and storage layout: Set up a RAID array to protect against drive failure—RAID 1 mirrors your data, RAID 10 adds speed and resilience. You’ll also need to decide how to partition your drives based on use (e.g., OS, application files, backups).
  5. Secure the server: Install a firewall, disable unused ports, set up SSH key authentication (instead of passwords), and install intrusion prevention tools like fail2ban. Security is critical—don’t leave defaults unchanged.
  6. Install your applications: Depending on your use case, this might include a LAMP/LEMP stack, Docker, a game server, or ecommerce platform. Use package managers like apt, yum, or choco to simplify installation and updates.
  7. Monitor and benchmark: Use tools like Netdata, Nagios, or Munin to track CPU, memory, disk usage, and uptime. Benchmark your server with sysbench or similar tools to make sure it’s performing as expected.
  8. Back up everything: Configure automated backups for your files and databases—daily at minimum, hourly if your data changes frequently. Store backups off-server or in a secure cloud bucket for disaster recovery.

If that sounds like a bit much for you and your team, you probably want to consider a managed dedicated hosting solution. Managed hosting adds an extra layer of support to your hosting plan, so the server experts at your hosting provider can take care of setup, installations, security monitoring, backups, etc.

FAQs about custom dedicated servers

Yes. You can repurpose consumer hardware or build from scratch using server-grade components. But be ready to manage power, cooling, networking, and physical security.

Entry-level builds start around $1,500 for a modest setup. High-end builds with dual CPUs, ECC RAM, and NVMe arrays can cost $10,000 or more. That doesn’t include colocation or ongoing maintenance.

A dedicated server is the machine that provides the compute power for your website, database, or application. Hosting is the service provided by a company (like Liquid Web) that owns the servers and makes them available to customers. 

How much RAM you need for a dedicated server depends on what you intend to use that server for. Here are some basic guidelines:

  • 32GB–64GB: Basic websites or low-traffic apps
  • 128GB: Databases, caching layers, higher concurrency
  • 256GB+: Video processing, in-memory analytics, large-scale virtualization
  • 1TB: AI inference, real-time big data pipelines, high-end rendering farms

Additional resources

What is a dedicated server? →

Benefits, use cases, and how to get started

What is bare metal restore? →

How it works, when to use it, pros and cons, and more

Fully managed dedicated hosting →

What it means and what fully managed services cover on dedicated hosting

Chris LaNasa is Sr. Director of Product Marketing at Liquid Web. He has worked in hosting since 2020, applying his award-winning storytelling skills to helping people find the server solutions they need. When he’s not digging a narrative out of a dataset, Chris enjoys photography and hiking the beauty of Utah, where he lives with his wife.

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