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>We are thinking to purchase datacenter license and copy into the existing server. Is this right approach are any complications will occur in this process.
If you are on a recent-ish version of Jira, then no, this is exactly the way to jump from Server to a single-node DC install. (I think this became possible in Jira 8.4, before then you had to mess around with directories and some properties files).
You may need to mess around with directory structures and you will need to mess with some settings files when you start adding more nodes later.
Yes, to remove Jira Software, blank out its licence key in the manage apps section (you'll find it fails anyway if you leave it with a server licence, better to clean it out before you start getting errors)