How to Build a Home Lab Using Your PC – Part 1: Proxmox VE

Categories: Hardware

When I was first setting up a home lab, things weren’t exactly easy. Virtualization felt like a black box, and enterprise hypervisors seemed complex. That’s what led me to write this article — to help others build a minimalistic lab using just a PC, a switch, and a laptop. Since not everyone likes long reads, I’ve split this into two parts. This first part covers setting up a home lab with Proxmox VE, a free and powerful alternative to VMware ESXi. The next article will cover using VMware Workstation 17 Pro for a similar setup.

Why Proxmox VE?

VMware ESXi used to be a popular choice for home labs, but as of 2025, ESXi is no longer free. Instead, many users have shifted to Proxmox VE, an open-source platform that offers similar features without licensing restrictions. Proxmox VE supports KVM-based virtualization, LXC containers, and ZFS storage, making it a solid choice for testing virtualized environments.

Hardware Requirements

Before starting, you need a PC that meets these minimum specs:

• Processor: Intel Core i7-12700 or AMD Ryzen 7 7700 (or better) with VT-x/AMD-V enabled.
• Memory: 32GB RAM (16GB minimum, but 32GB+ is recommended for multiple VMs).
• Storage: 2x 1TB SSDs (RAID 0 for reckless speeds and adrenaline, or RAID 1 for piece of mind).
• Network Adapter: A couple of 1GbE NICs (10GbE+ NICs are highly recommended).
• Switch (Optional): A simple managed or unmanaged switch for network separation.

If your PC has older hardware, it may still work, but performance could be limited. Check your BIOS to ensure CPU virtualization is enabled.

Preparing Your PC for Virtualization

To ensure your PC is ready for virtualization:

1. Enter BIOS/UEFI Settings:

• • Reboot your PC and press the key to enter BIOS/UEFI (commonly Del, F2, or Esc).

2. Enable Virtualization Technology:

• • Navigate to the CPU configuration section.
  • Enable Intel VT-x or AMD-V, depending on your processor.

3. Save and Exit:

• • Save changes and exit BIOS/UEFI.

Installing Proxmox VE

1. Download Proxmox VE:

• • Get the latest Proxmox VE 8.x ISO from Proxmox’s official website.

2. Create a Bootable USB:

• • Use Rufus or balenaEtcher to write the ISO to a USB drive.

3. Install Proxmox VE:

• • Boot your PC from the USB drive and follow the installation steps.

• • Choose ZFS RAID 0 if you are feeling lucky, or RAID 1 for tranquility.

• • Set up the admin credentials.

• • Configure network settings and install Proxmox VE.

4. Initial Setup:

• • Once installation is complete, reboot your host and check the IP address.
  • Log into the Proxmox web UI (https://your-server-ip:8006).

• • Update Proxmox repositories (disable the enterprise repo if you’re using the free version).

Setting Up Virtual Machines (VMs)

Once Proxmox VE is installed, you can create VMs for different use cases.

1. Download an OS ISO:

• • Go to the Proxmox web UI and upload an ISO (e.g., Windows Server 2025, Ubuntu 24.04).

2. Create a New VM:

• • Assign 4-8 vCPUs and 8GB RAM (adjust as needed).
  • Use VirtIO drivers for better performance (especially for Windows VMs).
  • Select a 10GbE VMXNET3 or VirtIO NIC for better networking.

3. Optimize Storage:

• • Use ZFS for snapshot capabilities and data integrity.
  • Allocate sufficient disk space based on VM needs.

4. Configure Network Settings:

• • Set up bridged networking to allow VMs to communicate with your home network.
  • Enable Promiscuous Mode if running nested VMs.

Enabling Nested Virtualization

If you plan to run VMs within VMs (nested virtualization), follow these steps:

1. Enable Nested Virtualization on the Host:

For Intel CPUs:

bash

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echo "options kvm-intel nested=Y" > /etc/modprobe.d/kvm-intel.conf

For AMD CPUs:

bash

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echo "options kvm-amd nested=1" > /etc/modprobe.d/kvm-amd.conf

Then, reload the kernel modules:

bash

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modprobe -r kvm_intel

modprobe kvm_intel

Verify that nested virtualization is enabled:

bash

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cat /sys/module/kvm_intel/parameters/nested

If it returns ‘Y’, nested virtualization is enabled.

2. Enable VT-x/AMD-V in the Guest VM:

• • Shut down the VM.
  • Set the CPU type to ‘host’ in the VM configuration:

bash

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qm set <VMID> --cpu host

• • Start the VM and verify that VT-x/AMD-V is enabled inside the guest OS.

Home Lab Use Cases

• Virtualized Windows/Linux Testing: Run Windows Server 2025, Ubuntu, or any other OS for testing.
• Self-Hosted Services: Deploy Nextcloud, Home Assistant, or Pi-hole.
• Learning Kubernetes/Docker: Run a small containerized environment.
• Security Testing: Set up a Kali Linux lab.

Conclusion

Proxmox VE is a powerful, free alternative to VMware ESXi, making it an excellent choice for home labs in 2025. With just a PC, a switch, and a laptop, you can build a fully virtualized environment without dealing with costly licensing. In the next part, I’ll cover setting up a home lab with VMware Workstation 17 Pro for those who prefer a desktop-based approach.