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Hetzner has something that several other hosting providers do not have, an "official" way to install Arch Linux https://docs.hetzner.com/robot/dedicated-server/operating-systems/standard-images/ This is relatively new, a friend pointed me to this some time ago. Previously you could still install it in a custom way yourself, for example : https://wiki.archlinux.org/index.php/User:PMay/Hetzner_step_by_step
I've seen the image in the Hetzner interface, but I wonder what's the benefit of using Arch as a server? I use Arch on my personal computers, but I'd be a bit afraid of using it as a production server. Is it that people want to use what they are used to?
Arch Linux offers a lot of packages, and on top of that has AUR, where you could even add your own preferred software if you would want to (Some time ago a friend of mine could pretty quickly add some software to AUR that he wanted to show me). Some people think that servers should only run well testing and solid software but for example NixOS is also a rolling distribution and still people run it on servers. Fedora has cutting edge software, still people use it on servers, and I will not be surprised if some people do run the rolling openSUSE Tumbleweed release on servers as well. One advantage is that you can choose from more recent software, and maybe this can also make a nice software testing platform for those who need to test software for themselves or for work.
what do you do if it breaks and your backup doesn't restore properly? You'd have to back up every single file including the OS with Arch because it's completely non-deterministic.
If you want a rolling release OS on servers you're probably better off with NixOS.