Best Server for Home Lab 2025: Rack, Tower & Refurbished Options Compared

Are you thinking about building or upgrading your home lab? In this guide, I’ll help you find the best server for home lab use — whether you’re focusing on virtualization, file storage, or overall performance.

Editor’s Note: This article was updated to include important considerations around TPM chips and SD card modules when building a home lab server. I also fine-tuned the content for better clarity and aligned it more closely with current virtualization requirements (like Windows 11, UEFI, and secure boot support).

I break down key specs like CPU, RAM, RAID controllers, and remote management features. Additionally, I highlight quiet and reliable server options that work well for both beginners and advanced users, regardless of whether you run Proxmox, ESXi, or Hyper-V.

What is a home lab server?

A home lab server is the core component of a personal, non-production environment where tech enthusiasts can experiment with new technologies. This dedicated machine serves as the backbone of your home lab, allowing you to run various operating systems, applications, and tools.

Home lab servers allow you to configure your setup however you like, enabling you to test different scenarios and find optimal configurations. They are an excellent way to gain hands-on experience in system administration, networking, or virtualization without the high costs associated with certification exams or production environments.

The beauty of a home lab server lies in its isolated nature. You can freely experiment with new software and technologies without damaging critical systems, and this safe environment encourages learning and innovation.

Before investing in a home lab server, consider factors like power consumption and its impact on your electricity bills. Despite these considerations, a well-chosen home lab server can be a valuable asset in your tech career toolkit, providing a platform for continuous learning and skill development.

What are the benefits of a home lab?

There are several benefits of having a home lab. Here are a few:

• Hands-on experience: A home lab provides hands-on experience with different technologies. It is a great way to learn new technologies and systems administration skills.
• Testing and development: A home lab can also be used for testing and development. It allows you to try out new technologies and software without worrying about damaging anything critical.
• Career toolkit: A home lab can be valuable to your career toolkit. It allows you to experiment with different configurations and find the best ones. Additionally, it provides hands-on experience with various technologies, which can be helpful in your career.
• A home lab can provide several benefits for VMware admins.
• The ability to study for a certification

With home lab hardware, you can safely try out new technologies, experiment with products, and learn from your failures – all from the comfort of your home.

As Thomas A. Edison said: “I have not failed. I’ve just found 10,000 ways that won’t work.”

Build the best server for homelab: Evaluate these features for a server

Operating System Choices for Your Home Lab Server

Selecting the right operating system is crucial for managing your home lab effectively. A popular choice among enthusiasts is the Proxmox server, which excels at handling virtual machines with efficiency and flexibility. Proxmox provides a robust platform to run various virtual machines, including Windows VM instances, enabling you to experiment with different operating systems and applications seamlessly.

Whether you’re hosting a media server, a web server, or other services, its user-friendly interface and powerful management tools make it ideal for both beginners and advanced users looking to optimize their homelab setup.

Server Form Factor: Tower vs. Rack

When picking a server, the shape matters. Tower servers are easy to use and fit well where you can’t have a rack. They’re also quiet, which is great for living areas. Rack servers are built for rack mount setups and save space. They’re good if you plan to grow your setup later. Both types do the same job, so pick based on your space and plans for the future.

CPU / Processor: Not as Critical as You Might Think

When setting up a server, many assume that the CPU is a crucial component that requires careful consideration. However, in a homelab environment, the CPU may not be as critical as in other setups. Here’s why:

Versatile Workloads

Home labs often handle tasks that don’t require high CPU power. A mid-range CPU can often suffice when running a few virtual machines or testing new software.

Energy Efficiency

High-end CPUs can consume a lot of power, which might not be ideal for your power bill. A CPU that consumes less power can be more energy-efficient while still meeting your needs. Choosing between AMD and Intel often comes down to power consumption, especially in a home lab setup.

Budget Considerations

CPUs can be expensive, and allocating funds to other components like RAM or storage is the better choice if you’re on a budget. I recommend buying rather more RAM and storage than a powerful CPU

Future Upgrades

Many server motherboards allow easy upgrades if you need more CPU power in the future. Some even support dual CPU configurations, allowing you to add a second CPU later. This flexibility means you can start with a more budget-friendly CPU and scale up as your needs grow.

Remote Management

What is remote management?

Remote management allows you to manage the server without physically being in front of it. It also eliminates the need for a keyboard or mouse. Although it comes at an extra cost, it is worth it, even in a home lab.

As you know, all manufacturers offer remote management. Dell calls it iDRAC, HP iLO, or Supermicro IPMI.

Features like accessing the BIOS are already included in the basic configuration for all servers. I recommend updating for iDRAC Enterprise (Dell). It will offer complete remote management, including login to the hypervisor. The enterprise package also provides the ability to monitor email notifications. It is worth the cost, even in a home lab environment.

The same applies to HP ILO; every Proliant server comes with ILO, but the Advanced pack offers more features, such as notifications and guest server remote control.

The Supermicro IPMI interface is okay, and the Jave requirements have been eliminated, but Dell and HP offer much better interfaces.

RAID controller with a few HDs

A RAID controller is a device that helps manage your computer’s storage and can boost its performance. It can create a storage array, a group of drives that work together to improve data security or increase storage capacity.

I recommend getting a RAID controller for your home lab server. The performance boost and the extra features are worth the cost. For example, some RAID controllers offer a cache, which can improve your server’s performance.

Dell PowerEdge or HP Proliant server already has a RAID controller on the mainboard, which is sufficient for home lab use.

I prefer a mixture of SSD, NVMe, and SAS/SATA drives in a RAID1 and RAID5 configuration. It is a good performance/cost balance.

If you are planning to use Proxmox with the ZFS file sytem, hardware RAID configurations is not the best choice, rather get a HBA only. The Proxmox operating system will see all HDs and you can configurre them for ZFS.

See my article RAID Controller Explained: What You Need to Know.

TPM Chip (Trusted Platform Module)

A TPM chip adds a critical layer of hardware-based security to your home lab server. It enables features like data encryption, secure boot, and measured boot, making it a highly recommended component for any modern server setup.

If you’re planning to run Windows 11 virtual machines, keep in mind that Microsoft requires TPM 2.0 and UEFI firmware. Both Proxmox and VMware ESXi support virtual TPM passthrough, but your physical server must have a TPM module to make use of this feature securely.

SD Modul (memory card)

Many systems come equipped with slots for SD memory cards, offering a convenient option for installing lightweight virtualization hypervisors, such as ESXi or Proxmox. Installing the hypervisor on an SD card can free up your main drives for data storage, helping optimize overall system efficiency.

In my setup, I run ESXi on a dual SD card module, which provides an additional layer of redundancy.

That said, some argue that using SD cards for hypervisor installations is risky because SD modules tend to wear out faster than hard drives or SSDs, especially with constant read/write operations. I think it’s still a valid option, but only if you use high-quality, industrial-grade SD cards and preferably a mirrored setup for extra resilience.

Noise

When purchasing a server, consider its noise level. From my experience with Dell PowerEdge and HP ProLiant servers, noise is usually not an issue, especially with newer tower models. However, Supermicro servers can still be quite loud and may not be suitable for shared spaces.

If you’re building a homelab in a quiet environment, check out my full guide on quiet server options for home labs — including real dB tests, airflow tips, and power-saving strategies.

Warranty

When investing in a home server, I always opt for a five-year next-business-day warranty package, which aligns with my typical upgrade cycle. By operating a mail server with Exchange 2019 at home, this warranty provides quick repairs and peace of mind.

Not sure what you’d actually do with a home server? Here are the top real-world uses of a home server to help you decide.

Choosing the best homelab server

Why Amazon Renewed Servers Are Perfect

Amazon Renewed servers are an excellent choice for home lab enthusiasts looking for powerful hardware at affordable prices. Here’s why they’re ideal:

• Cost Savings Without Compromise
  You get enterprise-grade hardware at significantly lower costs than brand-new servers, helping you maximize your budget without sacrificing performance..
• Reliability & Warranty Benefits
  Amazon Renewed servers undergo thorough testing and come with Amazon’s Renewed Guarantee, providing peace of mind with reliable hardware backed by warranty protection.
• Availability & Fast Delivery
  With Amazon’s extensive inventory, renewed servers are widely available and can be quickly delivered, allowing you to start projects without delay.
• Sustainability (Eco-Friendly Choice)
  Renewed hardware reduces electronic waste and promotes sustainability, making it a responsible choice for eco-conscious tech enthusiasts.

They are fully compatible with VMware, Proxmox (virtualization), gaming like Minecraft server , home assistant, or media management. 

I recommend Dell, HP, or Supermicro servers. I’m not a fan of Lenovo servers.

Dell Servers

Dell’s PowerEdge servers are another excellent choice, especially if you have specific use cases. They come with Intel Xeon processors and are super user-friendly. Customizing is a breeze; they even have a built-in RAID controller called PERC. There is no need for a separate one unless you have special requirements. Plus, they offer various bay options to fit your storage needs. I highly recommend PowerEdge for anyone setting up a server environment.

HP Servers

HP’s Proliant servers are a top pick for many, and the Proliant 380 or 360 Gen9/10 is a versatile server that stands out. It’s fast, easy to tweak, and has built-in tools like smart array controllers for storage and basic ILO for remote management. Want more features? You can upgrade the ILO anytime.

Amazon has great deals on renewed Proliant servers, making it even more budget-friendly.

Supermicro Servers

Supermicro servers are a budget-friendly pick but come with a few caveats. They’re noisier, so think twice about setting them up in a quiet space. The user interface isn’t as slick as that of HP and Dell, and their management features aren’t as robust. However, they do have basic remote management through IPMI.

If you go for Supermicro, consider getting a separate Mega RAID adapter card to boost its capabilities.

Looking for something quieter or more compact? You might prefer a mini PC:

FAQ

I would love to get some feedback from you. Was this article helpful? Please share your opinion with me in the comment section below. Or, if you prefer a more personal touch, feel free to email me directly at info@edywerder.ch. Your thoughts and insights are always appreciated. Additionally, you can connect with me on Reddit at Navigatetech.