Advice on setting up a home server?

SirMatterNot

Beginner
I've been tinkering with self hosting a few services on a basic VPS for the last year. Now want to try out more storage sensitive stuff like Immich and Paperless and (maybe) run a media server. Figured I'd do this on my own hardware.

I have a decade old machine with a 2nd gen i5 and Corsair TX650M that I am hesitating on repurposing as a server because I'd like a power efficient setup. Currently in two minds between swapping out the cpu+mobo+ram for a 7th or 8th gen setup vs getting a mini pc and calling it a day. If I take the first approach, would my PSU be an efficiency bottleneck even if I upgrade to more recent hardware?

Still very much a noob at this so all suggestions are welcome.
 
Would suggest to first setup on the machine you have, and then move to newer hardware.

The CPU is ancient and will not be efficient basis on a per watt basis.

For newer hardware, unless this is for heavy usage, I would suggest to pickup a mini PC from the likes of aasim or zeno or others. The PSU adaptor included is quite power efficient usually.

Coming to the PSU efficiency - generally, the max efficiency is around the 50% mark of the rated PSU. Unless this has changed in the years.