Virtually everyone on the Internet is using an OS that has the built-in capability to encrypt files with AES. Why would anyone delegate that to a server?
If you haven't, well, people should use that other service instead of this one.
Either way: I'm still totally unclear on why anyone would allow a server to encrypt files for them. I don't even reach the question of whether it's possible to do it securely, because it seems like such a weird thing to want.