Building server to host Websites

Hello all, I was curious to know if I build my own server and host websites would it be good in the long run? Also does anybody know about building link networks for affiliate sites?
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I think the web hosting businesses are overcrowded. When you enter "web host" into the search bar, you will get more than 1 billion results. You will have a hard time to compete with these keywords. Therefore, the CPC will be very expensive to compete in the long run.
Furthermore, if you enter "free web host", you will also get a result which is close to 1 billion. In other words, many companies are running freemium model.
Therefore, the profit margin may not be high enough to get your expenses covered at least for the first few months. You need to both "invade" and "defend" your business.
There are also a lot of affiliates around promoting the businesses, while some start their business with "private/white label".
Hope the above helps to form part of your decision.
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