Can't Start Nginx: "server" directive is not allowed here - ruby-on-rails

Question

I am trying to get a passenger + nginx instance running. Passenger has been successfully installed however, when going to to http://lakemagazine.northcentralus.cloudapp.azure.com/ we are receiving a time out error. So, I looked at nginx:
garrett#lakemag:~$ sudo nginx -t
nginx: [emerg] "server" directive is not allowed here in /etc/nginx/nginx.conf:65
nginx: configuration file /etc/nginx/nginx.conf test failed
Thus, nginx is not running, which I assume is my problem.
Here is my nginx.conf file:
user www-data;
worker_processes auto;
pid /run/nginx.pid;
events {
worker_connections 768;
# multi_accept on;
}
http {
##
# Basic Settings
##
sendfile on;
tcp_nopush on;
tcp_nodelay on;
keepalive_timeout 65;
types_hash_max_size 2048;
# server_tokens off;
# server_names_hash_bucket_size 64;
# server_name_in_redirect off;
include /etc/nginx/mime.types;
default_type application/octet-stream;
##
# SSL Settings
##
ssl_protocols TLSv1 TLSv1.1 TLSv1.2; # Dropping SSLv3, ref: POODLE
ssl_prefer_server_ciphers on;
##
# Logging Settings
##
access_log /var/log/nginx/access.log;
error_log /var/log/nginx/error.log;
##
# Gzip Settings
##
gzip on;
gzip_disable "msie6";
# gzip_vary on;
# gzip_proxied any;
# gzip_comp_level 6;
# gzip_buffers 16 8k;
# gzip_http_version 1.1;
# gzip_types text/plain text/css application/json application/javascript text/xml applic$
##
# Virtual Host Configs
##
#include /etc/nginx/conf.d/*.conf;
#include /etc/nginx/sites-enabled/*;
server {
listen 80;
server name http://lakemagazine.northcentralus.cloudapp.azure.com/;
root /lakemag/public;
passenger_enabled on;
passenger_ruby /home/garrett/.rvm/gems/ruby-2.3.0/wrappers/ruby;
}
}
Line 65 is where my server {} block starts. I am at a loss to my problem - all of the blocks seem to be defined appropriately to me. am I missing something?
*EDIT:
garrett#lakemag:~$ sudo nginx -t
[sudo] password for garrett:
nginx: [warn] server name "http://lakemagazine.northcentralus.cloudapp.azure.com/" has suspicious symbols in /etc/nginx/nginx.conf:65
nginx: [emerg] unknown directive "passenger_enabled" in /etc/nginx/nginx.conf:69
nginx: configuration file /etc/nginx/nginx.conf test failed
After Jorge's solution I am now receiving the above errors.

Answer 1

Where says:
server name http://lakemagazine.northcentralus.cloudapp.azure.com/
should say:
server_name http://lakemagazine.northcentralus.cloudapp.azure.com/
server is a directive to define a server block and to identify what server is you should write a server_name directive into it
http://nginx.org/en/docs/http/server_names.html
To check config file syntax use:
nginx -t