I guess it kind of depends?

As a data point, for two 1U servers co-located in Australia I'm paying about AU$500 per month.

If these two servers were low spec, then that would be more expensive than just renting dedicated servers.

But I can put whatever spec servers fit in those two rack units, including things with quite a lot of ram, quite a few ssds, 10GbE+ network links, etc.

Doing the same thing as that with dedicated servers would be quite a bit more than the AU$500/mo I'm currently spending.

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As a data point for anyone interested, those two servers are running Proxmox and host a bunch of (Linux) VMs that provide online services. Live migration (etc) between them works fine, etc. :)