A home server setup has five steps. Decide what the server will do, then pick hardware that fits that job. Pick an operating system, such as Proxmox VE, Ubuntu Server, TrueNAS or Unraid. Then add a few services, set up backups and make remote access safe.
Who this is for: you want one always-on machine for files, media, backups or self-hosted apps.
What is a home server?
A home server is a computer at home that runs all the time and provides services to other devices. Your phone backs up photos to it. Your TV streams movies from it. Your laptop saves files to it.
It is close to a home lab, but the goal is different. A home lab is for learning and breaking things. A home server is for services that you and your family depend on. Many people run both on one box. If you want the lab side, read what a home lab is and how to start one.
Step 1: decide what the server will do
Write down the jobs before you buy anything. The jobs decide the hardware and the OS. Common jobs are:
- File storage. A shared drive for the household.
- Photo and phone backup. A private copy of every photo.
- Media server. Movies, TV and music streamed to every screen.
- Network services. An ad blocker or DNS filter for the whole house.
- Home automation. A local hub for lights, sensors and heating.
- Self-hosted apps. A password manager, notes, a wiki or a recipe app.
- A test space. VMs for learning, kept apart from the services above.
Then ask two questions. How much storage do you need now, and in three years? Do you need to convert video on the fly (transcoding) for phones and TVs? Large storage needs drive bays. Transcoding needs a CPU with a good built-in graphics unit, or a separate GPU.
Step 2: pick hardware for your home server setup
There are four common classes of home server hardware. Each one fits a different set of jobs.
Old laptop
Free if you have one. It is quiet and uses little power. The limits are storage (usually one internal drive) and a single network port. It suits network services and a few small apps.
Old desktop
Free or cheap. It has room for several drives and more memory. It can be loud and use more power than you expect. It suits file storage, media and a first virtualization host.
Mini PC
Small, quiet and efficient. Many recent models have a CPU with good video transcoding. The limits are drive bays and network ports. Some have memory soldered to the board, so check the upgrade path before you buy. It suits apps, media and a small Proxmox host, with bulk storage kept on a separate box.
NAS box
A network-attached storage box is built for drives. It has several bays, hot-swap trays and its own OS. The CPU is often weak, so check it can run the apps you want. It suits storage first, with a few light apps.
Whatever you pick, check three things. The CPU must support hardware virtualization (Intel VT-x or AMD-V) if you plan to run VMs. You need a wired network port. And you need at least one SSD for the OS and apps.
Step 3: pick an operating system
The OS is the biggest choice in a home server setup. Four options cover most home servers. Check each vendor's site for current features and license terms as of October 2026.
| OS | What it is | Cost (verify) | Best at | Watch for |
|---|---|---|---|---|
| Proxmox VE | Hypervisor for VMs and LXC containers | Free, optional paid subscription | Running many isolated services and test VMs | Storage sharing needs extra setup |
| Ubuntu Server | General Linux server OS | Free, optional paid support | Docker hosts, simple setups, learning Linux | No web UI by default, you use the command line |
| TrueNAS | Storage OS built on ZFS | Free community edition, paid enterprise options | Reliable file storage with snapshots | App and VM features are secondary to storage |
| Unraid | Storage and app OS | Paid license | Mixing drives of different sizes, easy apps | Not open source, license cost |
Here is a simple rule. If you want many separate services and test VMs, start with Proxmox VE. Read what Proxmox VE is and why home labs run it first. If storage is the main job, start with TrueNAS or Unraid. If you only want Docker containers, start with Ubuntu Server.
Official docs: Proxmox VE, Ubuntu Server, TrueNAS and Unraid.
You can also combine them. A common pattern is Proxmox VE on the host, with a TrueNAS VM for storage and LXC containers for apps. It adds steps and risk. The TrueNAS hardware guide says a virtualized TrueNAS is not safe for critical data. If you try it, pass the real disks or the whole disk controller (HBA) to the VM, never virtual disks, and keep a separate backup.
Before you add services: network basics
A home server lives on your home network. Spend twenty minutes on the network now and you avoid hours of confusion later.
- Give the server a fixed IP address. Set a DHCP reservation in your router. Or set a static address on the server; if you do, pick an address outside the range your router hands out.
- Use a wired connection. Plug the server into the router or a switch. Wi-Fi drops and slows file copies.
- Name things. Give the server a short host name. Use the same naming pattern for every VM and container.
- Know your router. Find the admin page, the DHCP range and the DNS settings. You will need them for the ad blocker.
- Keep a fallback. If you point the whole house at a DNS server on your home server, keep a second DNS server set. Then the internet still works when the server reboots.
Later, you may want separate networks (VLANs) for the lab, smart home devices and guests. That needs a router and switch that support VLANs. It is a good second project, not a first one.
Step 4: your first five services
Do not install twenty apps on day one. Start with five that give real value. Add more once these run well.
- A DNS ad blocker. Pi-hole or AdGuard Home blocks ads and trackers for every device on the network. It is small and teaches you about DNS.
- File sharing. An SMB share for the household. On Proxmox, a small container can serve it. On TrueNAS or Unraid, it is built in.
- Photo backup. An app such as Immich backs up phones automatically. Treat this data as precious and back it up twice.
- A media server. Jellyfin or Plex streams your media library to TVs and phones.
- A dashboard or monitoring tool. Uptime Kuma or a simple dashboard shows what runs and what is down.
Many of these run as Docker containers. Read the Docker docs before you start. On Proxmox, decide if each service runs in an LXC container or in a VM. The guide to containers vs virtual machines helps you choose. For a wider view of what "virtualization" covers, see the types of virtualization.
Step 5: backups and remote access
Backups
Follow the 3-2-1 rule. Keep three copies of important data. Store them on two different types of media or devices. Keep one copy off site.
- Use RAID or ZFS mirrors to survive a dead disk. Remember that RAID is not a backup. It does not protect you from deletion, ransomware or fire.
- Back up VMs and containers on a schedule. Proxmox VE has backup jobs built in.
- Copy the most important data off site. A cloud storage bucket or a drive at a relative's house both work.
- Restore a file every month to prove the backup works.
Remote access
You will want to reach your server from outside the house. Do it safely.
- Do not open ports on your router for admin pages. Never expose the Proxmox, TrueNAS or Unraid web interface to the internet.
- Use a VPN. Tailscale, or a WireGuard server (which needs one forwarded UDP port), lets your phone and laptop join your home network securely.
- Use strong, unique passwords and turn on two-factor login where the OS supports it.
- Keep the system updated. Set a regular time each month to apply updates.
Common mistakes
- Buying before deciding the jobs. You end up with the wrong drive count or a CPU that cannot transcode.
- Mixing the lab and the family services. A test VM that eats all the memory can take down the photo backup. Set memory limits, or use separate hosts.
- Treating RAID as a backup. It is not. Keep separate backup copies.
- Exposing admin pages to the internet. Use a VPN instead.
- No backup power. A small UPS protects the drives during a power outage and gives the server time to shut down cleanly.
- No notes. Write down IP addresses, drive layouts and what each service does. Future you will thank you.
FAQ
What is the best OS for a home server?
It depends on the main job. Proxmox VE suits many separate services and VMs. TrueNAS suits storage first. Unraid suits mixed drive sizes and easy apps. Ubuntu Server suits a simple Docker host.
Can I use an old PC as a home server?
Yes. An old desktop is one of the best ways to start. Add an SSD for the OS and check the power use. If it is loud or uses a lot of power, a mini PC may cost less to run over time.
How much does a home server cost to run?
It depends on the hardware and your power price. A low-power mini PC uses far less than a full tower with many drives. Measure your server with a plug-in power meter and multiply by your rate.
Is a NAS the same as a home server?
A NAS is a home server built mainly for storage. Most modern NAS boxes can also run apps. A general home server is often stronger at apps and VMs but needs more setup for storage.
Do I need a static IP from my internet provider?
No. A VPN service such as Tailscale works without one. Inside your home, give the server a fixed local IP address so your devices can always find it.
Should I run Docker or Proxmox?
You can run both. Proxmox VE is the host. Docker runs inside a VM or an LXC container on top of it. If you only ever want Docker containers, a plain Ubuntu Server is simpler.
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