I am not sure I understand what you mean. You want to run the full editor over on the V-Server to do work in or just the dedicated server that comes as a output from the project?
If the latter it should almost not matter what distribution you run the server on as long as it is recent enough. The server should bring most if not all of the libraries with it and it is pretty lightweight if you do not do some crazy stuff in it(at least to begin with).
If you want to run the editor itself in a VM that is a slightly more complicated issue as decent graphics card is a must.
As a sidenote I do run build for my project headlesly for my CI solution using Gitlab so you can even compile the server binaries remotely if you wish to do so.