Unless you want that whole machine to support IAM/VPC/EBS/etc and have proximity to your other VMs.
If I were to be CTO of a brand new company today, I’d probably just colocate my own servers with K8S. Much cheaper and much lower latency. 2x 1TB RAM servers with 3x 8TB high speed U.2/U.3 drives each would last years.
If budget allowed, I’d even spin up another region with DB failover setup too.
All the same architecture applies, the only difference is it’s done with K8S yaml instead of the CDK