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You can use any server for content installation which has connectivity to Repo.
As the server where you install contents, will be used as like a staging server.
During installation of contents the modules and adapters will be extracted to local machine then transferred/uploaded to Repo.
So technically it doesn't matter where you install contents. Just for ease better to do it on Repo so you will not have any any connectivity issues.
Thank you for your advice!
I understood about basically, on any server is fine but prefer to install on the server which installed repository.