Which is more performant: A separate PostgreSQL server? Or local PostgreSQL?

Which is more performant: A separate PostgreSQL server? Or local PostgreSQL?

I have been running PostgreSQL on a separate server for a long time and use it on my site. From time to time I wonder, do you think this is necessary? So would local be more performant or a separate server?

All else being equal, a local server would be more performant as you save on the inter-server communication overhead.

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I’m thinking forward, but right now there may or may not be 600-1000 unique users. I set up a separate server in case I need more in the future, but I don’t know the exact capacity of the discourse. If I host Postgresql on the same machine, will it slow down under heavy load? How many users can it handle locally at a time?

my server;
Intel® Core™ i5-13500
64GB DDR4
2 x 512GB NVMe SSD (Gen4)
(Software-RAID 1)
1Gbit NIC

I split it into 2 parts, I gave 25gb ram to the main server and 20gb ram to the postgresql server. I’m not sure if I configured it well this way.

And sometimes I wonder if I should switch to cloud server. So I don’t want to spend too much money when there is a more suitable solution.

What do you think the best server features should be for a population of 1000-5000 users at a time?

Are you going to have 5000 users active at once?

I assume this will happen. Of course, this may change. For example, when there is a panel on TV where people can ask questions and the presenters can see these questions, will it be able to handle this kind of traffic? This is a forward-looking thought, I want to make sure now.