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If you want real time transcoding, then a hardware encoder would be best. Intel CPUs have had hardware H.265 encode support for the last 8 years. Intel ARC GPUs have a very good video encoder, but they require system that supports resizable BAR.
If you just want to transcode a large number of videos for storage, get a system with loads of CPU cores and run multiple transcodes in parallel. Software encoders produce higher quality video than hardware encoders.
There are cloud GPUs, but that gets very expensive, very fast. You are much better off buying your own hardware if you need to use it for a longer period of time.
Thanks
What is resizable BAR?
It improves memory access to the GPU, but I don't believe it's required for Intel ARC anymore.
thx