Sage 100 Premium 100 SQL and Database Requirements

We are purchasing Sage 100 Premium 100 SQL version.  

We will be purchasing a new server (Server 2012).  

I know little about SQL.  

My question is, does Sage provide the SQL version we need, or do we purchase it.  Would it be Microsoft SQL server?  

Also, I heard it's faster to be installed on the same server as the application server.  

Thoughts?

Thanks

Paula