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Mostly it boils down to laziness. They for sure have the ability to set up the server themselves but they can't be bothered to unless it's for a larger number of machines. They have essentially given a thumbs up to proceed with the setup but haven't offered assistance themselves. I think the team might already have reached out to them, but were let down which is why they tried to contact me.
The server will be stored in the personal office of one of the members of the team. It should be physically secure.
I don't think I would completely lose access to it, rather it's just that I won't be allowed to personally SSH to the server with my own devices. I may still be able to connect to it through one of the members' devices or onsite. The team member earlier mentioned will take care of the system after the setup.
I don't know what'll happen to the server after the project is over, nor am I in a position to assume something.
Why do you want to help lazy people? You are most certainly going to regret getting yourself into this.
Have you personally asked the IT department about this? I would be concerned that they were told "no" by IT, so they are asking you to do it behind their back.