Thanks,

-A new server (obviously)-------I will do that no issue
-More space for storing the data (obviously)------No issue as we are in virtual environment (resources no issue)

For your third and last requirement i suggest you use if you dont want to use built in features of SQL Server like replication or log shipping. 
1)SQL server integration services that updates all your tables or x tables x times per day, this is good because you can transform however you want your data to your report server.-------I am not certain about this
2)I don't know if you backup your production database every night and if you do just restore every morning your night backup on your report server, if you dont want to do this see 1st choice.----------I am not sure if this helps as the database I backup is going to 1 year of the date.

Please see my comments

Thank,s