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Proxmox: How I Turned a $300 Server into a Pocket Data Center

Constantin Potapov
11 min

Own data center cheaper than cloud: with Proxmox VE and an old server I run 15+ VMs for development, save ~$500/month, and have full control over the stack.

When Cloud Became Pricier Than Metal

At some point the cloud bill started to look like a mortgage payment. Half the machines idle — night, lunch, or I forgot to shut down an experimental VM three weeks ago. Familiar?

The fix was embarrassingly simple: a used $300 server + Proxmox VE. Result — 15+ VMs for databases, staging, experiments, VPN, proxy, CI runner — all on a trusty metal mule.

Savings: about $500/month. The server paid for itself faster than it took me to find the dark mode in the admin.

TL;DR: Proxmox is a free hypervisor with a friendly web UI. Install on bare metal and get a controllable “home cloud” without monthly rent pain.

Context of the Era

2024–2025 — cloud bills ballooned; “paying for idle” became normal. For devs and small teams, homelab often wins on TCO: cheap used hardware + setup time vs constant cloud rent. Control and experiment speed go up.

What You Actually Get

  • KVM VMs and LXC containers — run Linux, Windows, BSD.
  • Snapshots, backups, live migration — experiment without fear.
  • API and Terraform/Ansible — automation for order lovers.
  • Home‑style scale: need more — add a node, form a cluster.
Cloud
Proxmox Homelab
Monthly cost
$620 (3 servers + DB)
$120 (power + internet)
81%
Control
Limited by provider
Full root everywhere
Experimentation
Expensive and painful
As much as you want, free

Hardware without Fanaticism

My setup: used HP ProLiant, 128 GB RAM, SSD for system, HDD array for data. You can start with a $150 mini‑PC — enough for 3–5 VMs. More important than “powerful” is “quiet, reliable, and doesn’t eat the budget.”

Watch power draw. A big box 24/7 ≈ $25/month. A mini‑PC ≈ $2/month. Sometimes “slow and steady” literally means watt‑hours.

Adult‑Grade Deployment without Wall of Text

Download ISO, install, open the web UI — done. Do this immediately:

  • Disable enterprise repo, enable no‑subscription.
  • Set up backups: nightly local, weekly off‑site.
  • Wire monitoring and alerts (otherwise users will tell you first).

Then the fun: upload Ubuntu/Debian/Rocky ISO, “Create VM,” allocate CPU/RAM/disk, install the guest OS. By evening you’ve got your own “cloud” without the fine print.

Keep in Mind

  • Don’t expose databases. Hide behind VPN/reverse proxy.
  • Save where you control: caching, snapshots, thin disks.
  • Don’t save on backups. Practice restores — don’t “believe.”

Business Insights

  • TCO: $300 server + ~$120/month ops vs $600+/month in cloud → payoff in a few months.
  • Risk and responsibility: power, internet, updates — now yours. Mitigate with UPS, monitoring, off‑site backups.
  • Hybrid is fine: keep stateful at home, burst elastic loads to cloud.

Conclusion

Proxmox is a great starting point if you’re tired of paying for air and want control. Not for everyone (if you have five teams and petabytes — go cloud), but for small prod and dev — just what the doctor ordered.

The best part: I now experiment without checking the wallet. Spin VM up, break, rollback — and no “why did the bill spike again?”

See also