Proxmox VE is a free, Debian-based type-1 hypervisor that runs full KVM virtual machines and lightweight LXC containers side by side from one web-managed host. This guide covers how to install Proxmox: booting the official ISO, configuring disk and network during setup, and logging into the web UI on port 8006 for the first time.
What Is Proxmox VE?
Proxmox VE (Proxmox Virtual Environment) is an open-source, Debian-based hypervisor that manages both KVM virtual machines and LXC containers from a single web interface. It’s free to install and run — the paid subscription tiers only gate access to the enterprise package repository and vendor support, not the software itself. That combination of “real VMs and lightweight containers in one tool, no license fee” is why it has become the default choice for homelabs and a serious contender in production environments that would otherwise reach for VMware.
Dedicated Server or Cloud VDS: Which Contabo Server Supports Proxmox
Nested virtualization — the hardware feature Proxmox depends on to run VMs efficiently — is not available on every server type. On Contabo, only Dedicated Server and Cloud VDS support it; Contabo VPS does not have the hardware access Proxmox needs and isn’t a fit for it. Between the two supported options, the practical difference is scale.
| Attribute | Cloud VDS | Dedicated Server |
|---|---|---|
| Cores | 6–24 Virtual Cores, guaranteed (AMD EPYC 7282 2.8GHz) | 12–64 (AMD Ryzen 9 / EPYC, by SKU) |
| RAM | 24–96 GB | 64–192 GB (up to 1152 GB on the largest SKU) |
| Nested virtualization | Supported | Supported |
| Starting price | From €37.13/mo | From €130.48/mo* |
| Best for | Homelab, small Proxmox clusters, learning | Production workloads, several heavy VMs, dedicated I/O |
*Entry Dedicated Server price reflects a limited-time offer on the 12-core SKU at time of writing.
Before You Start: Requirements and Planning
- CPU virtualization extension (AMD-V or Intel VT-x) — present on every Contabo Dedicated Server and Cloud VDS CPU, so this is a non-issue on either.
- Plan RAM and storage around the VMs you actually intend to run, not the host OS — Proxmox itself has a light footprint.
- Network planning: Proxmox creates a bridge (vmbr0) during install that your VMs attach to — know your server’s IP and gateway before you start if you want a non-default bridge configuration.
- Decide between a manual ISO install and Contabo’s selectable-at-order-time Proxmox option before you begin — the sections below cover both.
Step-by-Step: Installing Proxmox VE
The Fast Path: Selecting Proxmox at Order Time or via Reinstall
Contabo’s Customer Control Panel offers Proxmox VE as a selectable operating system both when ordering a new Dedicated Server or Cloud VDS and via the Reinstall action on an existing one. Choosing it there provisions a working Proxmox host without touching an ISO at all — the fastest path if you don’t need a specific ISO version or custom partitioning.
Manual ISO Installation Walkthrough
- Download the official Proxmox VE ISO from proxmox.com and upload it through your server’s custom-ISO option, or mount it via the remote KVM console.
- Boot from the ISO and select “Install Proxmox VE” at the boot menu.
- Choose the target disk. On a server with multiple drives, decide on ZFS (built-in RAID and snapshots) versus a simple ext4 install at this step — it can’t be changed without reinstalling later.
- Set the country, time zone, and keyboard layout, then set the root password and an email address for system notifications.
- Configure the network: hostname (FQDN), IP address, gateway, and DNS server — use the values from your server’s control panel, not defaults.
- Confirm the summary screen and start the install. The server reboots into Proxmox VE once it finishes.
First Login and Accessing the Web UI
Open `https://[your-server-ip]:8006/` in a browser. Your browser will warn about the certificate — Proxmox ships a self-signed one by default, so this is expected on a fresh install, not a sign of a problem. Log in as `root` with the password set during installation, with “Linux PAM standard authentication” as the realm.
Post-Install Essentials
By default, Proxmox points at the enterprise package repository, which requires a paid subscription to access — leaving it as-is means `apt update` fails against a repo you can’t reach. Switch the repository to the no-subscription channel if you’re running without a subscription, and disable the subscription nag that otherwise appears on every web UI login. A widely used community post-install script automates this switch along with a handful of other first-boot settings (kernel version pinning, a few sensible sysctl defaults), which is faster and less error-prone than editing repo files by hand for a first-time setup. Once the host itself is configured, backup strategy is the next thing worth setting up — Contabo’s existing Introduction to Proxmox guide covers snapshots and the `vzdump` backup workflow in detail, so it’s worth reading before you put anything important on the host.
Why Run Proxmox VE on Contabo
Cloud VDS is the affordable entry point for a homelab-scale Proxmox node — dedicated physical cores and confirmed nested-virtualization support at a fraction of Dedicated Server pricing. Once a single node isn’t enough — more VMs than one server’s RAM comfortably holds, or you want a small cluster instead of one box — Dedicated Server’s higher core and RAM ceilings take over. Either way, the install steps above are identical; only the hardware underneath changes. For what to do after the host is running, Contabo’s existing Introduction to Proxmox guide is the place to go for backup and snapshot strategy.
FAQ: Installing Proxmox VE
Can I install Proxmox VE on a Contabo VPS?
No. Nested virtualization isn’t supported on Contabo VPS, so Proxmox won’t run efficiently there even if installed. Contabo Dedicated Server and Cloud VDS both support it and are the correct product lines for Proxmox.
Do I need a paid subscription to use Proxmox VE?
No — Proxmox VE itself is free and fully functional without one. A subscription adds access to the enterprise repository and vendor support; without it, you switch to the free no-subscription repository instead.
What are the minimum requirements to run Proxmox VE?
A 64-bit CPU with AMD-V or Intel VT-x virtualization support, enough RAM and storage for the VMs you plan to run on top of the host, and a network connection for the bridge Proxmox configures during install.
Can I install Proxmox VE from a USB drive?
Yes, on hardware you have physical access to — write the ISO to a USB drive with a tool like Balena Etcher or Rufus and boot from it. On a rented server, use the provider’s remote console or custom-ISO upload option instead, since there’s no USB port to plug into.
Disclaimer: Product specifications, features, and prices mentioned in this article are subject to change and may vary by region, billing term, and active promotions. Please check each provider’s or brand’s official website for current figures, pricing, and local currency rates.