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comment CLI only Linux on Intel Celeron 266 MHz
Since you're initially after an Ubuntu installation, Debian might be a good choice for a server. You definitely have sufficient resources for the installation. If the server is usable, however, depends on the applications and services you intend to run.
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comment 100% open source linux distro
The OP asked for “open source”, not for “Free Software” according to the FSF definitions.