How to Install and Configure Proxmox VE on a Bare Metal Dedicated Server

If you're running a bare metal dedicated server, you're already paying for serious hardware. Proxmox Virtual Environment (VE) lets you squeeze every bit of value out of it by turning that single machine into a full virtualization platform running multiple isolated Linux containers (LXC) and virtual machines (VMs) side by side.

Proxmox VE is a free, open-source Type 1 hypervisor built on Debian Linux. It combines KVM (Kernel-based Virtual Machine) for full virtualization and LXC (Linux Containers) for lightweight OS-level virtualization, all managed through a clean browser-based dashboard. It's an ideal fit for dedicated servers at FitServers because it eliminates the need for a separate management OS and gives you enterprise-grade features at no licensing cost.

This guide walks you through installing Proxmox VE from scratch, accessing the web interface, and spinning up your first container and VM.

Step 1: Boot from the Proxmox ISO

Mount the Proxmox VE ISO using your dedicated server provider's out-of-band management tool (IPMI, iDRAC, iLO, or similar). At FitServers, you can attach an ISO directly through the control panel's remote console.

Boot the server and select "Install Proxmox VE (Graphical)" from the boot menu.

Step 2: Run the Installer

The graphical installer is straightforward. Follow these steps:

1. License Agreement: Accept the EULA to continue.
2. Target Disk: Select the disk where Proxmox will be installed. Click Options to choose the filesystem. ext4 works well for most setups; ZFS is a solid choice if you want built-in snapshots and RAID.
3. Location and Timezone: Set your country and timezone.
4. Password and Email: Set a strong root password and an admin email for alerts.
5. Network Configuration: This is critical. Enter your Hostname (e.g., pve.yourdomain.com), IP Address (your server's static IP), Netmask, Gateway, and DNS Server.

Review the summary and click Install. The process takes 5 to 10 minutes. The server will reboot automatically once finished.

Step 3: Access the Proxmox Web Interface

Once the server reboots, open a browser on your local machine and navigate to:

https://YOUR_SERVER_IP:8006

You'll see a security warning because Proxmox uses a self-signed certificate by default, which is expected. Proceed past it.

Log in with the following details:

• Username: root
• Password: the password you set during installation
• Realm: Linux PAM standard authentication

You're now inside the Proxmox dashboard. You'll see a "No valid subscription" notice, which is normal for the free community version. Click OK to dismiss it.

Step 4: Update Proxmox and Fix the Repository

By default, Proxmox points to the enterprise (paid) repository. Switch it to the free community repo before running updates.

Open Shell from the top-right menu (or SSH into your server as root) and run the following commands:

# Disable the enterprise repo
echo "# deb https://enterprise.proxmox.com/debian/pve bookworm pve-enterprise" \
  > /etc/apt/sources.list.d/pve-enterprise.list

# Add the no-subscription community repo
echo "deb http://download.proxmox.com/debian/pve bookworm pve-no-subscription" \
  > /etc/apt/sources.list.d/pve-no-subscription.list

# Update and upgrade
apt update && apt full-upgrade -y

Reboot after the upgrade is complete using the command reboot.

Step 5: Create an LXC Container

LXC containers are lightweight and share the host kernel, making them perfect for running web servers, databases, or application stacks with minimal overhead.

1. In the Proxmox web UI, go to Datacenter → your node → CT Templates.
2. Click Templates and download a template (e.g., ubuntu-22.04-standard).
3. Click Create CT (top right).
4. Fill in the necessary fields, such as CT ID & Hostname (e.g., 101 and web-server), Password for the container root, Template you downloaded, Disk size (e.g., 20 GB), CPU cores, Memory (e.g., 1024 MB), and Network settings (bridge to vmbr0, enable DHCP or assign static IP).
5. Click Finish. Once built, right-click the container and hit Start.

Open the container console from the UI or SSH directly using its IP. Your container is live.

Step 6: Create a Virtual Machine (KVM)

VMs provide full hardware emulation and can run any OS, including Windows.

1. Upload your OS ISO by navigating to your node → local storage → ISO Images → Upload.
2. Click Create VM (top right).
3. Configure the general settings like Name & VM ID, select your uploaded ISO in the OS tab, leave defaults in the System tab (enable Qemu Agent if available), choose your Disk size and storage, assign CPU cores and Memory, and bridge your Network to vmbr0.
4. Click Finish, then Start the VM.
5. Open the Console tab and complete the OS installation as you normally would on a physical machine.

Quick Reference: LXC vs VM