That's what I was thinking too. My home server consumes like 15 W and is silent.
If you get a rack mounted server made for data centers and stick it in a closet so you can't hear it then yes, i guess this approach makes sense.
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Works good IME, but you have to plug it into the wall first. Sometimes if you plug the appliance in, and then plug the KAW in, it will miscalibrate