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You have absoulte control of a dedicated server aswell. But it's always better if you're close to a Co-location datacenter and you can got there and actually see the server running and it simplyfies use. But you still have to follow their terms of use either way as you use their network.
A dedicated server is a fysical server that you rent and use as Root. You can put whatever you want on there aslong as it's compliant to their TOS and other legal documents and contracts. The same issue is present on Co-location (unless the company has no consern for their own well being heh).
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