Do you need physical access to the servers? We've recently moved half of our servers to a virtual environment (8 core processor, 48gb ram, 2TB SAN - x2) and it works out great. I can RDP into our dev, QA and staging environments with ease. If I need a new server setup it can be done within a few minutes by taking a saved image and giving it a new name and ip. BAM done! I even run my own VM's locally if I want to test out beta products (hello asp.net mvc!).
Todd Smith