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How do server upkeep costs look like for fediverse stuff?

I'm pretty new to the fediverse, and I find the idea amazing. But one thing concerns me though. How will server owners be able to afford to run servers with massive amounts of data coming through them? Theoretically speaking, if a Reddit migration were to happen how would server upkeep costs look like?

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  • My personal (extremely small) instance with only a few users currently costs around $8 / month on a VPS. Still have plenty of headroom for more users as well I believe.

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