Many new and existing hosts out there use one of these three methods; to Resell, Lease To Own or Collocate.
What should a host choose when offering:
Minecraft Hosting (NA)
Minecraft Hosting (EU)
VPS Hosting (*)
Web Hosting (*)
As in everywhere.
As my choice is, Colocate. This does actually require a high investment rate. You do control your own servers, your own hardware and whatever you need to upgrade you can easely do it.
And it's GDPR confirmed :P