Hetzner VPS Setup Guide - Configuration Decisions

Step 1: Go to Hetzner Cloud

Navigate to https://console.hetzner.cloud/
Log in or create an account
Click “New Project” or select existing project
Click “Add Server”

Step 2: Choose Location

Selection: Falkenstein, Germany (fsn1)

Why: Closest to Belgium (~600km)
Best latency (10-15ms)
Hetzner’s flagship datacenter

Step 3: Choose Image (Operating System)

Selection: Ubuntu 24.04 LTS

Why: Best Docker support, long-term updates until 2029
Most tutorials/documentation available
Modern packages, great community

Step 4: Choose Server Type

Selection: CX43 (Shared vCPU x86)

8 vCPU (AMD/Intel)
16GB RAM
160GB NVMe SSD storage
Cost: ~€10-11/month

Step 5: Networking

Primary IPv4: Enable (Required)

Cost: ~€0.72/month
Why: Essential for websites, NextCloud, broad compatibility
IPv6 included free automatically

Total networking cost: ~€0.72/month

Step 6: Volumes (Additional Storage)

Selection: None (skip for now)

The 160GB built-in storage is sufficient initially
Can add later if needed (€5/month for 100GB)

Step 7: Backups

Selection: Disabled (skip)

Saves €2.20/month (20% of server cost)
Why skip: Better to backup to your homeserver via WireGuard
Doesn’t include volumes anyway
Server is easily rebuildable

Step 8: SSH Keys

Important: Add your SSH key!

Click “Add SSH Key”
Paste your public key (from ~/.ssh/id_rsa.pub or ~/.ssh/id_ed25519.pub)
If you don’t have one, generate it first:

  ssh-keygen -t ed25519 -C "your_email@example.com"

This enables secure, password-free login

Step 9: Labels

Selection: Leave empty

Not needed for single server
Can add later if you expand

Step 10: Cloud Config

Selection: Leave empty

Manual setup is better for learning
Easier to debug and understand

Step 11: Server Name

Suggestion: Choose a descriptive name

Examples:

homelab-vps
nextcloud-server
belgium-main

Step 12: Review & Create

Final Configuration Summary:

Location: Falkenstein (fsn1)
OS: Ubuntu 24.04 LTS
Type: CX43 (8 vCPU, 16GB RAM, 160GB storage)
IPv4: Enabled (~€0.72/month)
Backups: Disabled
SSH Key: Added ✓

Total Cost: ~€11-12/month

Click “Create & Buy Now”

Step 13: Wait for Provisioning

Server typically ready in 30-60 seconds
You’ll see the IPv4 address appear
Server status will change to “Running”

Step 14: Save Important Information

Write down:

Server IPv4 address: (example: 123.45.67.89)
Server name: (what you chose)
Root password: (if you didn’t add SSH key - but you should have!)