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Most 7 Days to Die multiplayer server owners rent servers from a server hosting company.
These server hosting companies often describe their servers as dedicated servers. But, in reality they are a VPS (virtual private server.)
The actual dedicated server can have up to 20 virtual private servers on it.
What we run here at Badplayer Gaming is a 100% dedicated server owned by us with a 500 Mbps symmetrical fiber optic internet connection.
Our dedicated server has dual Intel Xeon processors and SSD (solid state drive) disks in raid 5 for the fastest speed possible with this configuration.
For near 100% uptime, we also have battery backups for the server and network gear and a generator for longer term outages.
Most of the larger multiplayer server owners push the limits of 7 Days To Die by allowing 50-100 players on 1 server at once.
This is not great for reliability because 7 Days To Die is only designed to host 8 players and we feel we are pushing the limits at 20 players.