i've just scored 8 Dell 2950's and a Dell Blade Chassis with 10 Dell 1855 Blades, including a NetApp NAS. i'm interested to hear what other game devs would do with the gear. :)
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It all depends on the specs. But I would use that hardware for an MMO. A particularly simple one.
On the other hand you could host a few dedicated game servers and earn a few buck that way.
There are many ways to use server hardware, and one of them is to host and store game states, scores, leader boards and web services for your games. Don't underestimate this.
You could also build a social game (Facebook, etc).
Anyway you will need some bandwidth to run all or any of this.