First matter to consider is expectation for the server, e.g. what is target of maximum online players.
Up to 500 players a VPS can be enough, however not necessarily cheaper. For any higher count of active player a Dedicated Server will be definitely a better choice.
Does the server suppose to be global or local/regional?
This is very important aspect while selecting the hosting. If the server meant to be run for selected world area only then the choice of server hosting should consider lowest latency (connection delay time) from/to the selected region, otherwise find most optimal option of lowest latency for most of your target regions.