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I didn't mean to imply it needed server hardware. You can absolutely self-host Nextcloud. But RPIs are the absolutely lowest-end of hardware for serving duties. They're great little systems but they're designed to be cheap, not performant.
I self-host currently on a VM running on a 12 year old x86 system with 8GB RAM and with the Nextcloud file storage going over a 1Gbps NFS mount. Not exactly a high-end setup. And it performs just fine. I was previously running on a AWS EC2 instance where I noticed occasional issues running on a T4g.SMALL. (only 2GB RAM). I had to bump up to a MEDIUM at some point though.
It worked with less RAM pretty fine for a long time. But as I increased usage it would have issues occasionally. I think with all the images I have it was doing lots of processing for thumbnails and the like. I never really dove into it to see what exactly was going on though...
But still - a moderately old desktop system with 4-8G of RAM is just fine for "self-hosting".
EDIT: I should add - I'm also hosting MariaDB on the same server - also with its data stored on an NFS share.