Building a homelab does not require an expensive server rack, noisy enterprise hardware or a dedicated room. A modern Mini PC can run virtual machines, Docker containers, home automation, network tools, media services and private cloud applications from a compact system beside your router.

This guide explains how to build a homelab from start to finish. You will learn how to choose suitable hardware, plan your network and storage, install Proxmox, deploy your first services, configure backups and access the system securely from outside your home.

What Is a Homelab?

A homelab is a private computing environment that you operate at home. It can consist of one Mini PC or multiple servers, storage devices and network components.

People build homelabs to:

• Learn Linux, networking and virtualization
• Run self-hosted applications
• Test software without affecting a main computer
• Host a private cloud
• Automate smart-home devices
• Build a personal media server
• Create development and testing environments
• Learn cybersecurity in an isolated network
• Back up computers and mobile devices
• Gain practical IT experience

Unlike a normal desktop computer, a homelab server is usually designed to stay online and provide services to other devices on the network.

What Can You Run in a Homelab?

The best homelab projects solve a real problem or help you learn a useful skill.

Popular services include:

Beginners should start with two or three services. Adding too many applications immediately makes security, updates and troubleshooting more difficult.

What Hardware Do You Need to Build a Homelab?

A basic homelab needs five components:

1. A computer to run the services
2. Memory for virtual machines and containers
3. SSD or hard-drive storage
4. A wired network connection
5. A separate backup destination

Optional additions include a managed network switch, a NAS, an external storage enclosure and an uninterruptible power supply.

Processor

Choose a 64-bit processor that supports hardware virtualization. AMD generally calls this feature AMD-V, while Intel uses Intel VT-x.

Four CPU cores can handle basic network services and several lightweight containers. Six or eight cores provide more room for virtual machines, databases and multiple simultaneous workloads.

For most homelabs, additional CPU cores are more useful than a very high maximum boost frequency.

Memory

Memory is often the first limitation in a virtualized homelab.

Containers can be relatively lightweight because they share the host operating-system kernel. Full virtual machines need their own operating system and therefore consume more memory.

A practical starting point is:

• 8GB: Basic Linux server or a few lightweight containers
• 16GB: Starter Proxmox homelab
• 24–32GB: Multiple VMs and a larger application stack
• 64GB or more: Advanced virtualization, databases and many simultaneous services

Do not allocate all available memory to guests. Proxmox and its storage services also need sufficient resources.

Storage

Use an SSD for the operating system, virtual-machine disks and application data. NVMe storage improves startup times and responsiveness when several services access storage simultaneously.

A useful layout is:

• Primary SSD: Hypervisor, VMs and containers
• Secondary SSD: Application data and local backup copies
• NAS or external drive: Bulk storage and independent backups

If the Mini PC supports two M.2 drives, check whether both positions accept NVMe drives. Some models combine one NVMe-compatible slot with one SATA-only slot.

Network Connection

A wired Ethernet connection is preferable for a homelab server. It generally provides more consistent performance and is easier to troubleshoot than Wi-Fi.

Gigabit Ethernet is sufficient for DNS filtering, home automation, web applications and many media-server workloads. A 2.5GbE connection becomes useful when:

• Moving large files to a compatible NAS
• Backing up several computers
• Running storage-intensive applications
• Serving multiple high-bandwidth users
• Expanding the network to 2.5GbE equipment

The router, switch, server and storage device must all support 2.5GbE to achieve end-to-end 2.5Gbps connectivity.

Backup Storage

A second SSD inside the same Mini PC is useful, but it is not a complete backup. Hardware failure, theft, malware or an incorrect command can affect both internal drives.

Keep important backups on a physically separate device, such as:

• A NAS
• An external USB drive
• Another computer
• A second server
• Encrypted cloud storage

Why Use a Mini PC for a Homelab?

A Mini PC provides a useful balance of processing power, memory capacity, connectivity and physical size.

Compared with a traditional rack server, a Mini PC is usually:

• Easier to place in a home
• Quieter during normal operation
• Simpler for beginners to manage
• Suitable for a desk, shelf or network cabinet
• Equipped with modern CPU and SSD technology
• Capable of running several virtual machines or containers
• Easy to connect to external storage

A Mini PC is particularly suitable for application hosting, home automation, media services, Linux learning and software development.

However, it may not be the best choice when you need:

• Many internal hard drives
• Several PCIe expansion cards
• Multiple built-in network ports
• Enterprise remote-management features
• A powerful discrete GPU
• Very large amounts of ECC memory

In those cases, a dedicated NAS, workstation or server may be more suitable.

How Much CPU, RAM and Storage Do You Need?

The following configurations are editorial recommendations. Actual resource requirements depend on the applications, number of users and amount of stored data.

Plan for the homelab you expect to operate during the next two years, but do not buy capacity that has no realistic use.

Which NIPOGI Mini PC Fits a Homelab?

NIPOGI E3B: Starter Homelab

The NIPOGI E3B is a practical starting point for lightweight self-hosting and a first Proxmox or Docker environment.

Depending on the selected version, the E3B is available with six- or eight-core AMD processors, 16GB or 24GB of onboard memory and two M.2 storage positions.

It is suitable for:

• Pi-hole or AdGuard Home
• Home Assistant
• Uptime Kuma
• A small Nextcloud installation
• Linux learning
• Several lightweight containers
• A personal development server

E3B specifications vary by processor configuration. Check the selected version’s memory, SSD and second-drive compatibility before purchasing.

NIPOGI H1: Balanced Homelab

The NIPOGI H1 features an AMD Ryzen 7 7735HS with eight cores and 16 threads. Current configurations include 16GB or 24GB of LPDDR5 memory, two M.2 NVMe positions and an Ethernet interface supporting up to 2.5Gbps.

It is suitable for:

• Multiple Linux virtual machines
• Larger Docker stacks
• Home automation and network services
• Development environments
• Media services
• Faster transfers to compatible network storage

Because its memory is onboard, choose the required capacity when purchasing instead of depending on a future RAM upgrade.

NIPOGI G1: Advanced Homelab

The NIPOGI G1 provides an AMD Ryzen 9 8945HS, 32GB of DDR5 memory, two SO-DIMM positions and support for up to 96GB of RAM. It also includes two M.2 NVMe positions and 2.5GbE networking.

It is more suitable for:

• Numerous virtual machines
• Memory-intensive services
• Local development environments
• Databases
• Larger Docker stacks
• Advanced virtualization projects

The upgradeable memory makes the G1 a stronger option when you expect the homelab to grow.

Product configurations and availability can change. Always check the selected product variant before ordering.

Step 1: Decide What Your Homelab Will Run

Create a list of the applications you genuinely want to use.

For example, a beginner might choose:

• Pi-hole for DNS filtering
• Home Assistant for home automation
• Uptime Kuma for monitoring
• Jellyfin for media
• Nextcloud for private file access

Next, identify which services are critical. If Home Assistant controls important devices, it may deserve its own VM and backup schedule. A temporary Linux test environment does not need the same level of protection.

A simple planning table can help:

This prevents the homelab from becoming a collection of undocumented applications.

Step 2: Plan the Homelab Network

A simple Mini PC homelab can use this structure:

Connect the Mini PC to the router or switch with Ethernet.

Assign the server a stable local IP address. For many home networks, the easiest method is a DHCP reservation in the router. This allows the router to assign the same address to the Mini PC whenever it reconnects.

Record the following information:

• Mini PC hostname
• Server IP address
• Router IP address
• DNS configuration
• Proxmox administrator address
• Virtual-machine addresses
• Storage locations
• Backup destination
• Administrator accounts

If your router and switch support VLANs, you can later separate trusted computers, smart-home devices, guest devices and server workloads. VLANs improve network organization, but they are not required for a first homelab.

Step 3: Prepare the Mini PC

Before installing a hypervisor:

1. Back up any files stored on the Mini PC.
2. Download any required NIPOGI drivers for future use.
3. Enter the BIOS or UEFI interface.
4. Confirm that AMD-V or Intel VT-x is enabled.
5. Confirm the correct boot order.
6. Connect the Mini PC through Ethernet.
7. Connect a monitor and keyboard for installation.
8. Prepare a USB flash drive for the installer.

Installing Proxmox on the internal drive will erase the existing operating system, including the preinstalled Windows installation. Make sure you have backed up anything you want to keep.

Step 4: Install Proxmox VE

Proxmox VE is a bare-metal virtualization platform that manages KVM virtual machines and Linux containers through a web interface.

The installer includes a Debian-based operating system, virtualization tools, backup functions and web-based management.

According to the official Proxmox system requirements, the host should use a 64-bit Intel or AMD processor with hardware virtualization support. Proxmox recommends at least 2GB of memory for the operating system and its services, in addition to the memory used by virtual machines and containers.

Proxmox Installation Process

1. Download the latest Proxmox VE ISO from the official Proxmox download page.
2. Write the ISO to a USB flash drive with a trusted imaging tool.
3. Insert the USB drive into the Mini PC.
4. Open the boot menu and select the USB drive.
5. Start the Proxmox VE graphical installer.
6. Select the SSD that will contain Proxmox.
7. Choose the correct country, time zone and keyboard layout.
8. Set a strong administrator password.
9. Enter a valid email address for system notifications.
10. Configure the hostname and management IP address.
11. Review the disk selection carefully.
12. Complete the installation and remove the USB drive.
13. Restart the Mini PC.

The installer will display a management address similar to:

https://192.168.1.100:8006

Open that address from another computer on the same network and sign in with the administrator credentials created during installation.

A browser warning may appear because a new Proxmox installation uses a self-signed certificate. Confirm that the address is your local Proxmox server before proceeding.

Step 5: Update and Document the Host

After signing in:

1. Install current Proxmox updates.
2. Confirm the server’s date and time.
3. Check CPU, memory and storage detection.
4. Confirm that the network connection is stable.
5. Create a separate administration process for routine use.
6. Record the Proxmox version and network configuration.
7. Set up system notifications if appropriate.

Do not install general applications directly on the Proxmox host. Keeping the hypervisor dedicated to virtualization makes maintenance and recovery easier.

Step 6: Plan the Storage Layout

Avoid storing the operating system, application data and only backup copy on the same SSD.

A practical two-drive layout is:

• SSD 1: Proxmox, virtual-machine disks and containers
• SSD 2: Application data, media metadata or local backups
• External device: Independent backup copy or bulk media storage

Two internal drives do not automatically create a backup. They are still located inside the same computer and can be affected by the same hardware failure or configuration mistake.

Should You Install TrueNAS?

TrueNAS is designed for storage management, but it requires appropriate hardware and careful disk planning.

The current TrueNAS hardware guide lists an x86-64 processor, 8GB of RAM, a 20GB SSD boot device and two same-sized storage devices for creating a storage pool as minimum requirements. Additional memory is needed for applications, virtual machines and other advanced workloads.

A Mini PC with only one or two internal SSD positions is often better used as the compute server. A separate NAS or external enclosure can provide bulk storage.

If TrueNAS is virtualized, passing physical storage devices directly to the VM requires additional planning. Beginners storing important data should avoid complicated virtualized storage designs until they understand disk passthrough, redundancy and recovery.

Step 7: Choose Between VMs, LXC and Docker

Proxmox supports full virtual machines and Linux containers. Docker can be installed inside a dedicated Linux VM.

Use a Virtual Machine When:

• The service needs its own operating system
• Stronger isolation is important
• You want to run Windows
• The application is distributed as a virtual appliance
• You are testing system-level changes
• You need a separate kernel

Use an LXC Container When:

• The service is lightweight
• You want faster startup
• Lower memory usage is important
• The application runs on Linux
• Full operating-system isolation is unnecessary

Use Docker When:

• The application provides an official container image
• You want repeatable application deployment
• Several related applications must be managed together
• You want to use Docker Compose
• You expect to move the application to another server later

A common beginner architecture is:

Install Docker using the official Docker Engine documentation. For applications that require multiple containers, use the official Docker Compose installation guide.

Avoid running unofficial installation scripts without understanding what they change.

Step 8: Deploy Your First Services

Begin with one infrastructure service and one user-facing application.

A sensible order is:

1. Deploy Pi-hole or AdGuard Home.
2. Install Uptime Kuma.
3. Create a dedicated Docker VM.
4. Deploy one application such as Jellyfin or Nextcloud.
5. Confirm that the application starts automatically.
6. Create and test a backup.
7. Document the configuration.
8. Add the next service only after the first one is stable.

Do not allocate every CPU core or all available memory immediately. Leave sufficient resources for Proxmox, backups, temporary workload peaks and future applications.

For a more focused streaming setup, read our Mini PC media server guide.

Step 9: Configure Backups

A Proxmox snapshot is useful before an update, but a snapshot is not a complete backup.

A snapshot normally depends on the original storage system. If that storage fails, the snapshot may also be lost.

A proper homelab backup plan should include:

• Scheduled VM and container backups
• A physically separate backup destination
• Copies of important application data
• Exported configuration files
• Database backups where required
• At least one off-site copy of irreplaceable data
• Regular restore tests

For important data, follow the 3-2-1 principle:

• Keep three copies of the data
• Use two different storage types
• Store one copy off-site

For example:

Original data: Mini PC SSD
Local backup: External drive or NAS
Off-site backup: Encrypted cloud storage or another location

Do not assume a successful backup notification means that recovery will work. Periodically restore a test VM, container or file.

Step 10: Configure Secure Remote Access

Do not expose the Proxmox web interface directly to the public internet.

Opening an administration port on the router increases the server’s exposure to automated scans, password attacks and software vulnerabilities.

A private VPN or overlay network is safer for remote administration.

Tailscale can connect approved computers and mobile devices through an encrypted private network. A Tailscale subnet router can also provide remote access to local devices that do not have Tailscale installed.

The official Tailscale subnet-router guide covers enabling IP forwarding, advertising the required network route, approving the route and configuring access controls.

A basic remote-access process is:

1. Install Tailscale on a dedicated VM, container or appropriate host.
2. Sign in to your Tailscale network.
3. Approve the new device.
4. Configure access-control rules.
5. Enable subnet routing only if needed.
6. Test access through a mobile connection outside the home.
7. Confirm that unnecessary router ports remain closed.

Remote networking does not replace application security. Use unique passwords, multifactor authentication where available and separate administrator accounts.

Step 11: Monitor the Homelab

Monitoring helps you discover failures before you need a service.

Track:

• CPU utilization
• Memory utilization
• SSD temperature
• SSD health
• Free storage space
• Network availability
• Failed application checks
• Backup results
• Login attempts
• System updates

Uptime Kuma can monitor whether services are reachable. Proxmox also provides host, VM, container, memory and storage information through its dashboard.

Set alerts for meaningful events. Too many low-value notifications can cause important warnings to be ignored.

Step 12: Create a Maintenance Routine

A homelab needs regular maintenance.

Weekly Tasks

• Check whether critical services are online
• Review failed backup jobs
• Confirm that sufficient storage remains
• Investigate unusual errors

Monthly Tasks

• Install security updates
• Review administrator accounts
• Check SSD health
• Remove unused containers and images
• Update the service inventory
• Test a small restore
• Review external access

Before Major Updates

• Read the release notes
• Confirm that a current backup exists
• Take a temporary snapshot where appropriate
• Update one service at a time
• Test the service before continuing
• Record important configuration changes

Avoid automatically applying every major application update without a rollback plan.

Common Homelab Mistakes

Buying Too Much Hardware

Large enterprise servers can provide many cores and drive positions, but they may be unnecessary for a few home services.

Start with a realistic application list. Upgrade only when monitoring shows a genuine CPU, memory, storage or network limitation.

Underestimating Memory

Multiple virtual machines can exhaust memory even when CPU utilization remains low. If virtualization is your main goal, memory capacity and upgradeability may be more important than maximum CPU frequency.

Using Only One Storage Device

A single SSD creates a single point of failure. Keep important data on another physical device and maintain tested backups.

Treating RAID as a Backup

RAID can keep a system available after certain drive failures. It does not protect against accidental deletion, malware, theft or an incorrect configuration.

Exposing Administration Dashboards

Do not casually expose Proxmox, NAS, router or Docker administration interfaces to the public internet. Use a VPN or secure private network.

Running Everything in One Container

Combining every application into one container makes updates, troubleshooting and recovery more difficult. Separate important services according to their function and risk.

Installing Applications on the Hypervisor

The Proxmox host should remain focused on virtualization. Run applications inside VMs or containers instead of modifying the host unnecessarily.

Failing to Document the System

Without documentation, it can be difficult to remember IP addresses, storage locations, administrator accounts and dependencies.

At minimum, maintain a record of:

• Device names
• IP addresses
• Service URLs
• VM and container IDs
• Storage locations
• Backup destinations
• Update procedures
• Recovery instructions

Do not store plain-text passwords in the same document.

Frequently Asked Questions

Can You Build a Homelab with a Mini PC?

Yes. A modern Mini PC can run Proxmox, Linux virtual machines, Docker containers and common self-hosted services. It is particularly suitable for home automation, network tools, private cloud applications, development environments and media servers.

Is 16GB of RAM Enough for a Homelab?

Sixteen gigabytes is sufficient for a starter environment with several containers or a small number of virtual machines. Choose 24GB or 32GB if you plan to run multiple operating systems, databases or several larger services simultaneously.

Is an Eight-Core Processor Necessary?

No. Four or six cores can handle many lightweight services. An eight-core processor provides additional capacity for multiple VMs, software development and simultaneous workloads.

Should Beginners Use Proxmox or Docker?

Proxmox and Docker solve different problems.

Proxmox manages virtual machines and Linux containers across the physical host. Docker packages and runs individual applications. A common configuration is to install Proxmox on the Mini PC and run Docker inside a dedicated Linux VM.

Does a Homelab Need a NAS?

No. You can begin with internal SSD storage and an external backup drive.

A NAS becomes useful when you need high-capacity shared storage, multiple hard drives, drive redundancy or a backup destination that is independent of the Mini PC.

Do You Need 2.5GbE for a Homelab?

Gigabit Ethernet is sufficient for many beginner homelabs. A 2.5GbE connection is more beneficial when transferring large files, backing up several computers or accessing a compatible high-speed NAS.

Can a Homelab Run Without a Monitor?

Yes. A monitor and keyboard may be required for the initial installation, but normal management can be performed remotely through the Proxmox web interface, SSH and individual application dashboards.

Can Proxmox Run on Wi-Fi?

Proxmox can technically be used in environments involving Wi-Fi, but a wired Ethernet connection is strongly preferable for a stable server. Virtual networking and bridges are generally easier to configure with a physical Ethernet interface.

Can a Mini PC Homelab Run 24/7?

A Mini PC can operate as an always-on server when it has adequate ventilation, a stable power supply and suitable operating temperatures. Keep air vents clear and monitor SSD and CPU temperatures.

Do You Need a UPS?

A UPS is not mandatory, but it can protect the server from short power interruptions and provide time for a controlled shutdown. It is especially useful when the homelab stores important data or runs critical home-automation services.

Final Thoughts

The best homelab is not the one with the most processor cores, storage devices or applications. It is the one you can understand, secure, back up and maintain.

Start with one Mini PC, one virtualization platform and a small number of useful services. Make sure the network, backups and remote access work correctly before expanding the system.

For lightweight services, the NIPOGI E3B provides an accessible starting point. The NIPOGI H1 offers more capacity for multiple services and virtual machines, while the upgradeable memory of the NIPOGI G1 makes it better suited to a growing virtualized environment.

Build the smallest homelab that meets your current requirements—and leave a clear path for the next project.