That's the nice thing about Hetzner, OVH and Co. You don't need Colocation but can instead rent servers monthly. That way you never have to bother with physical hardware, the knowledge needed is purely on the software side.

I also think colocation or own datacenters are a poor fit for most. But dedicated servers are underrated. They can be offered much cheaper as it's simply renting standard hardware and you don't need any of the expertise or size you'd need for colocation.