Servers can do any number of things jordan282, from being a file server/repository/backup, through to hosting games servers, through to running home networks, or even running specialist software like a CCTV setup or a Folding@Home rig.
So "Why buy a server"? Lots of reasons mate. It just depends what you need to do
I have a home server running on an Atom 230 board. I use it as a file server, for SSH tunneling and as a test box. Used to use it for a lot more, it had Apache, MySQL, PHP installed on it, was a box for downloading torrents (only the legal kind, before you ask) and ran a bunch of scripts that grabbed data from the internet. There are a lot more things you could use it for, too, and at the low prices you can get that kind of gear for, it's worth it.
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