12 TB fits entirely into the RAM of a 2U server (cf. Dell PowerEdge R840).
However, I think there's an implicit point in TFA; namely, that your personal and side projects are not scaling to a 12 TB database.
With that said, I do manage approximately 14 TB of storage in a RAIDZ2 at my home, for "Linux ISOs". The I/O performance is "good enough" for streaming video and BitTorrent seeding.
However, I am not sure what your latency requirements and access patterns are. If you are mostly reading from the 12 TB database and don't have specific latency requirements on writes, then I don't see why the cloud is a hard requirement? To the contrary, most cloud providers provide remarkably low IOPS in their block storage offerings. Here is an example of Oracle Cloud's block storage for 12 TB:
Max Throughput: 480 MB/s
Max IOPS: 25,000
https://docs.oracle.com/en-us/iaas/Content/Block/Concepts/bl...Those are the kind of numbers I would expect of a budget SATA SSD, not "NVMe-based storage infrastructure". Additionally, the cost for 12 TB in this storage class is ~$500/mo. That's roughly the cost of two 14 TB hard drives in a mirror vdev on ZFS (not that this is a good idea btw).
This leads me to guess most people will prefer a managed database offering rather than deploying their own database on top of a cloud provider's block storage. But 12 TB of data in the gp3 storage class of RDS costs about $1,400/mo. That is already triple the cost of the NAS in my bedroom.
Lastly, backing up 12 TB to Backblaze B2 is about $180/mo. Given that this database is for your dev environment, I am assuming that backup requirements are simple (i.e. 1 off-site backup).
The key point, however, is that most people's side projects are unlikely to scale to a 12 TB dev environment database.
Once you're at that scale, sure, consider the cloud. But even at the largest company I worked at, a 14 TB hard drive was enough storage (and IOPS) for on-prem installs of the product. The product was an NLP-based application that automated due diligence for M&As. The storage costs were mostly full-text search indices on collections of tens of thousands of legal documents, each document could span hundreds to thousands of pages. The backups were as simple as having a second 14 TB hard drive around and periodically checking the data isn't corrupt.