Proxmox VE (Virtual Environment) is a free, open-source hypervisor that transforms an ordinary mini PC into a full homelab platform — capable of running multiple virtual machines and Linux containers simultaneously on the same hardware. Instead of dedicating a machine to one purpose, Proxmox lets you run Home Assistant, TrueNAS, Pi-hole, and a Ubuntu server all on the same mini PC, each isolated from the others.
This guide gets you from bare hardware to a running Proxmox installation with your first VM, without assuming any prior virtualization experience.
What Can You Run on Proxmox?
Proxmox supports two types of workloads:
- KVM Virtual Machines (VMs): Full virtualization — each VM gets its own isolated kernel, can run any OS (Windows, macOS, Linux, BSD). Slightly higher overhead but complete isolation.
- LXC Containers: Lightweight Linux containers that share the host kernel. Much lower overhead than VMs — a container running Pi-hole might use only 50MB of RAM.
Popular Proxmox homelab setups combine VMs for OS-level isolation (TrueNAS, pfSense) with LXC containers for lightweight services (Pi-hole, Nginx, Home Assistant’s add-ons).
Hardware Requirements
Proxmox itself is lean. The minimum for a functional homelab:
- CPU: Any modern x86-64 processor with virtualization support (Intel VT-x or AMD-V). The Intel N100 supports VT-x. Verify in your mini PC’s BIOS — virtualization support must be enabled.
- RAM: 8GB minimum, 16GB comfortable. Each VM needs RAM allocation — a Home Assistant VM might use 2GB, a TrueNAS VM needs 8GB for ZFS. Plan your total RAM around what you want to run simultaneously.
- Storage: 32GB minimum for Proxmox itself. All VMs and containers stored on the same drive need additional space — a 500GB NVMe SSD gives comfortable headroom for the OS and several VMs.
Installation: Step by Step
Step 1: Download the Proxmox VE ISO from proxmox.com. Flash it to a USB drive using Rufus (Windows) or Balena Etcher (any platform).
Step 2: Boot your mini PC from the USB drive (press F2 or Delete at startup to access BIOS and change boot order). The Proxmox installer launches automatically.
Step 3: Follow the graphical installer. Select your target drive for installation, set your time zone and keyboard layout, and create a root password and admin email. The installer handles the rest.
Step 4: After installation, Proxmox boots and displays its IP address. On another computer on your network, open a browser and navigate to https://[your-proxmox-IP]:8006. Log in with username “root” and your password.
Creating Your First VM
In the Proxmox web interface: click “Create VM” in the top right. Give it a name, upload an ISO (or download one directly in the web UI under local storage → ISO Images → Download from URL), configure CPU cores, RAM allocation, and disk size. For a beginner’s first VM, Ubuntu Server 24.04 LTS is an excellent choice — lightweight, well-documented, and supports everything you’ll want to run.
Start the VM and connect via the built-in console in the Proxmox web UI. No VNC client needed — Proxmox includes noVNC built-in. Complete the OS installation normally, then access your running VM via SSH from any other machine on your network.
Should You Run Proxmox on an N100 Mini PC?
Yes, with appropriate expectations. An N100 with 16GB RAM can comfortably run 3–5 lightweight LXC containers plus 1–2 small VMs simultaneously. You won’t run heavy workloads — no Windows gaming VM or intensive machine learning — but for a home services hub running Pi-hole, Home Assistant, a small file server, and a development environment, the N100 is entirely capable.
For a more serious homelab, a Ryzen 5 or 7 series mini PC with 32GB RAM gives significantly more headroom. The additional cost is often worth it if you’re planning to expand your virtualized services over time.
FAQ
Is Proxmox free? Yes. Proxmox VE is free and open-source. There’s an enterprise subscription available for commercial use with additional support and no-subscription repository access, but the free tier includes all core functionality and uses the community repository.
Can Proxmox replace a NAS? Proxmox can host a TrueNAS VM, which in turn manages your storage. This is a popular approach — Proxmox as the hypervisor, TrueNAS as a VM handling storage, Home Assistant as another VM. Your USB dock drives can be passed through directly to the TrueNAS VM using Proxmox’s USB passthrough feature.