The most ecological solution generally is sharing one dedicated server between many users. Each of them can administrate her own virtual machine. By sharing, the load is more constant: the hardware does not spend as much electricity being idle. The hardware in question usually is server-specific too (no video card consuming energy for nothing).

You should also take into consideration that most people have a WiFi router at home, which is idle most of time too. Instead of that, it would be better to use a single board computer as a server and a WiFi router in one.

Also, for privacy sake it's much better to the computer at your home instead.

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