I'm planning to self-host a game server for friends and may switch between Project Zomboid, Palworld, Enshrouded, and ARK, though only one game would run at a time. I usually see gaming PCs recommended with CPUs such as a Ryzen 5 5600X or an X3D model, but people often run dedicated servers on CPUs that are a decade old. Are game-server CPU requirements genuinely much lower, or are normal gaming PCs simply overbuilt on the CPU side? What work does the server actually perform compared with the player's PC?
3 Answers
The big caveat is that requirements vary by game. Some servers are mostly waiting for network activity, while others constantly process AI, world simulation, saves, and physics. Games such as Minecraft with a large view distance, lots of players, or heavy mods can benefit from strong single-core performance. Several of the games you listed may also become demanding with large bases, busy worlds, or many players.
A dedicated server usually doesn’t render graphics, particles, character models, or visual effects. Its main jobs are running the game logic, tracking player and world state, handling AI and physics where required, and sending updates to connected clients. The player’s computer handles the rendering and most client-side visual work, so the server can need considerably less CPU power than a gaming PC.
It still has to simulate more than just player positions, though. The exact workload depends on the game, tick rate, number of players, AI, mods, and how much of the world remains active.
Older workstation and server CPUs can work well because many dedicated servers are relatively light and don’t need a graphics card at all. A Haswell-era Xeon, for example, can be perfectly adequate for a small private server, especially if it has enough RAM and the game isn’t heavily modded.

For one game at a time and a small group of friends, start with the hardware you have rather than buying a high-end gaming CPU. Monitor CPU usage, single-core load, RAM, and server tick performance, then upgrade only if the specific game needs it.