I have just invested in a new web server, which I have yet to set up. My previous server (which was a workstation in a previous life) gave in a few months ago, and my website is currently running off my workstation...
The server is no extreme power house, but a decent spec'd tower server (12 GB RAM, four way xeon processor) and with plenty of disk space. It will run linux. I will house the server in my office, which is on a university network (100Mb in/out network connection).
If anyone is interested, I could set it up to host any other websites. I am open to negotiations on pricing, depending on your needs. It might not be competitive price-wise to cloud-hosting and a lot of other options, but the bandwidth is unlimited and disk space plenty.
I won't be able to make any uptime guarantees, there is no UPS and redundancy in the network, but it should be good enough for most things - and I will do my best to keep it running (after all, my own website will be housed there).
Please let me know if you want to hear more!