Many people have an old PC or an outdated gaming laptop lying unused in a corner. You may think it’s junk, but that machine can still be incredibly useful. With the right approach, you can convert it into a powerful home server for your home or office. Even decade-old computers are far more capable than most of us realise. They can run multiple services such as a NAS, VPN, password manager, media server, or even self-hosted websites. You can also turn the setup into your own private cloud.
The best part is that you don’t need to spend money on expensive software. Most tools used in self-hosting are open-source and available for free. You may choose to upgrade the old computer with a new SSD or extra RAM, but the basic server setup does not require a large investment. Converting a refurbished or unused system into a server is not only cost-effective but also a great learning opportunity. You get hands-on exposure to modern IT skills that can help you switch careers or build your own startup in the future.
There are many tools available for self-hosting, but Proxmox remains my personal favourite. I have been using it for more than four years in my homelab. It is secure, stable, versatile, and easy to manage. Proxmox lets you run all your services from a single dashboard without much complexity. Since it is open-source, you don’t have to pay anything to start using it.
Whether you are new to homelabs or already exploring self-hosting, this guide will help you understand the basics and the key benefits of running your own home server.
Understanding Self-Hosting and Why It Matters
Self-hosting means running digital services on your own computer instead of using cloud platforms like Hostinger, AWS, or Google Cloud. Many everyday tools such as file storage, media streaming, website hosting, password management, and photo backups can run on a home server. When you host these services yourself, you gain more control over your data and avoid monthly subscription charges that can add up over time.
One of the biggest advantages of self-hosting is data ownership. Your files, photos, and backups stay on your own hardware. You don’t have to depend on the privacy policies of third-party companies, and you reduce the risk of your information being misused.
Another advantage is flexibility. You can experiment with new tools, try different operating systems, and customise your setup exactly the way you want. This makes self-hosting a great learning environment. You get practical experience with virtualization, Linux, networking, and server management. These skills are valuable if you want to change your IT career path or if you plan to build and manage digital products as a founder.
Why an Old PC Works Perfectly as a Home Server
Old PCs often have more power than many modern NAS devices or single-board computers. I started my own homelab journey with a decade-old Intel i3 4th Gen desktop that had only 8 GB of DDR3 RAM. Even that machine was able to run multiple services at the same time.
If you upgrade such a system to 16 GB of RAM and add one or two hard drives, you can easily run a NAS along with the other services mentioned in this article. Using an SSD for your operating system will make the machine feel much faster and more responsive. Large hard drives will give you the storage you need for photos, videos, files, and backups.
If you use two or more drives, you can also enable redundancy through ZFS or RAID. This protects your data if one of the drives fails. Upgrading older hardware does not require a big budget. Even a cheap SSD or used RAM can significantly improve performance. Because the cost is low and the hardware is still powerful enough for most tasks, an old PC becomes an ideal entry point for anyone who wants to build a homelab.
Why Proxmox Is the Best Platform for Beginners
Proxmox is one of the easiest and most popular ways to manage a home server. It allows you to run virtual machines and lightweight containers on the same hardware. This means you can run multiple services at the same time without conflicts.
Proxmox has a clean, web-based user interface that makes it simple to manage everything, even if you are new to Linux or server administration. Built on Debian Linux, Proxmox includes enterprise-grade tools like KVM virtualization and LXC containers. It also supports features such as backups, snapshots, ZFS storage, resource monitoring, and clustering.
These features are usually found in expensive enterprise products, but Proxmox brings them to everyone for free. Once Proxmox is installed, you can access a central dashboard to manage all your virtual machines and services. You can allocate CPU, memory, and storage to each application based on your needs. This ensures that each service gets the right resources without affecting the others.
Step-by-Step Guide: Installing Proxmox on Your Old PC
Installing Proxmox is simpler than most people expect. You don’t need advanced technical knowledge to get started. All you need is a USB drive, the Proxmox ISO file, and your old computer.
Start by visiting the official Proxmox website and downloading the latest ISO image. Use a tool like Rufus or BalenaEtcher to make a bootable USB drive. Once the USB is ready, plug it into your old PC and boot from it.
Follow the on-screen instructions to start the installation. Proxmox will ask you for basic information like the installation disk, your country, time zone, and the root user password. When the installation completes, the system will show you an IP address.
Open any computer on the same network, type that IP address into your browser, and you will reach the Proxmox dashboard.
Next, configure your storage. If your PC has an SSD and additional hard drives, choose how you want to use them. Most people install Proxmox on the SSD and use the hard drives to store virtual machine data, media files, and backups. You can set up redundancies using ZFS or RAID to make your storage more reliable.
Inside the Proxmox dashboard, you can start creating containers and virtual machines. Everything is controlled through the web interface, so you don’t have to work with the command line unless you want to.
Services You Can Host on Your Home Server
Once Proxmox is running, you can install a variety of services based on your needs.
Nextcloud
Nextcloud is one of the most popular open-source alternatives to Google Drive. It lets you store files, share documents, manage calendars, and sync data across devices. With its wide range of apps, it can become a full-featured personal cloud.
Plex
Plex is a powerful media server. You can stream movies, TV shows, and personal videos on any device—smart TVs, laptops, or smartphones. The interface is smooth and easy to use, making it a great choice for home entertainment.
WordPress (Self-Hosted)
If you love building websites, a self-hosted WordPress environment is perfect for testing themes, plugins, and updates. You can experiment without depending on external hosting and have full control over your setup.
Tailscale
Tailscale gives you secure remote access to your home server from anywhere in the world. It creates a private VPN network that works without complex configuration. This is extremely helpful if you travel or work remotely.
TrueNAS
TrueNAS is ideal if your main focus is storage. It provides reliable file management, backups, snapshots, and data protection. Many users run TrueNAS inside Proxmox or on separate hardware based on their requirements.
Benefits of Running a Home Server
Running your own home server gives you complete control over your files, your privacy, and the services you rely on every day. You avoid recurring subscription fees, maintain your data locally, and customise everything to suit your needs.
A home server grows with you. You can start with one or two services and expand as you learn more. Whether you want a personal cloud, a development environment, or a private VPN, everything is possible.
You also gain valuable hands-on experience in areas like virtualization, networking, and Linux. These skills are in high demand in IT, DevOps, and cloud engineering roles. And because you can use an old PC, the overall cost remains very low.
Who Should Consider Building a Home Server
A home server is ideal for anyone who wants more control over their digital environment. Beginners will find Proxmox easy to understand. Tech enthusiasts can experiment freely. Web developers and WordPress users can create a local testing environment that mirrors real-world hosting setups.
Even non-technical users benefit from a home server. Families can store photos and videos safely. Small businesses can host internal tools and manage their files securely.
Final Thoughts and How to Move Forward
Setting up an old PC as a home server is one of the best ways to begin your self-hosting journey. With Proxmox as your foundation, you can install multiple services, explore virtualization, and create a secure digital environment for personal or professional projects.
If you need help with your setup or want guidance on building a homelab, you can book a consulting session with me. I also share tutorials and in-depth content on my YouTube channel. Follow me there if you want to learn more about self-hosting, WordPress, and modern digital tools.