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If you rent a dedicated server, you will pay a monthly fee. You don't own the server, your just using it.
If you went out and bought your own server, then you'll need to rent space in a datacenter to put it in. This is called colocating
Either way, you will still pay for bandwidth. Bandwidth can be measured a number of ways such as 1000Gb /month or unlimted with a 10/Mbs port. Of course, the more you pay, the better the deal.
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