Need help setting up dedicated server

You will have to find professionals who are experts in this industry of game hosting. Virtualization will play a big here as you are planning to let others allocate their own servers. This takes the format of deploying an instance(which is another term for virtual machine guest OS).

You will need to provide an interface users can use to setup their servers. This interface must also detect what instances are running and where, as to not allow overlaping or interference. You will also need a huge datacenter if you plan to reach players in different areas of the globe. Virtualization and clustering are your two main components you must specialize in.

The best course of action is to research Internet gaming servers like, minecraft, openarena, unreal tournament, world of warecraft etc. These sites are exactly what you are trying to build. Contact their support team or site engineers and ask for consultation. Network with them, tell them what you are trying to do and what steps must be taken. This project will require a strong technical mindset. They will expect you to know server and network management.