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Very easy if you’re building a new box. The latest Linux kernel (6 I think) has all the required drivers available, and no encoding limit like Nvidia. The Intel GPUs are pretty great for media transcoding.
Personally I setup an old Dell r720 and stuck the GPU in that. My hypervisor is proxmox and I just run jellyfin as an unprivileged container.
Sure thing. My electric rate is pretty cheap though. You may be better off finding a small box with integrated graphics in the CPU. Then add storage separately. Connected NAS or something else.
But I like the Dell servers since they’re so cheap for the value.