Will this server be enough to handle what I need?

I'm not sure about resourcing as I don't play minecraft, but a Xeon should handle more than anything. You might even be able to get by with the G3220 version.

The T20's have been on sale a LOT. You could also look on Amazon at the Lenovo TS140's. They can be had with an i3 often for around $250, or with a Xeon for less than $400.

Dell is also having a sale with the T110ii with Windows Server 2012 Foundation Ed, 8Gb RAM and a Xeon quad-core for something like $650. If you're going to run Windows Server, I would definitely go for the T110ii. I have both a T110ii and a T20, and the T110 is a WAY better machine. The RAM upgrade alone would cost an extra $50 from Crucial, or $100 from Dell. I think it comes with the same hard drive, but you can upgrade to a 1TB Constellation drive for like $30.
 
I'd consider more memory and an SSD to be your best server enhancements.

Minecraft is still single-threaded so having a shit-ton of cores isn't going to do a lot if anything. You'll want a higher clock speed if possible.
 
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