"No copyright Issues" hmm.
Sounds like your boss wants a host that's outside of legal jurisdiction of copyright law. For example, in Europe, when someone wants to do this they get hosting on the old military sea outpost which was claimed as a soverign state many years ago, and named Sealand (
http://www.havenco.com/). Unfortunately, this meant this was a haven for illegal websites too, including child pornography cartels.
It is dubious because when someone asks for a host like this it's saying something about the person wanting to do something illegal. Posting copyrighted material owned by someone else, and not licensed to you is a very very dubious activity.
Given the space requirements and the traffic throughput I can only guess this is for hosting some form of video site or Peer to Peer serving or thereabouts.