How to Build Your First Homelab in 2026 (The RAM Crisis Edition)

TL;DR: Yes, RAM prices have gone mental. No, that doesn’t mean you can’t start a homelab. This guide covers how to build a career-advancing lab in 2026 using free cloud resources, budget hardware, local AI, and workflow automation—all while navigating the worst memory shortage in a decade.

New to homelabs entirely? Start with What is a Homelab? for the fundamentals, then come back here for the 2026-specific guidance.

The Elephant in the Server Room: RAM Prices

Let’s address this upfront because if you’ve priced any hardware lately, you’ve probably felt physically ill.

DDR5-6000 64GB kits that cost around £170 in May 2025 are now pushing £600+. That’s not a typo. The memory shortage is real, it’s driven by AI datacentre demand eating up production capacity, and according to industry analysts, it’s not going away until late 2027 at the earliest.

I watched a CyberPowerPC representative publicly cite a 500% jump in DDR5 costs. SK Hynix is saying shortages could last until 2028. This is the reality of building anything in 2026.

But here’s what I’ve learned from running production infrastructure: constraints breed creativity. Some of the best homelabs I’ve seen have been built on shoestring budgets because the builders had to actually think about what mattered.

So let’s build something anyway.

Why Start a Homelab in 2026?

The same reason as always: because “3 years enterprise experience required” is gatekeeping nonsense, and a homelab is how you get real experience without waiting for permission.

Every senior DevOps engineer, cloud architect, or infrastructure lead I know has a lab. Not because they’re hobbyists—because they needed somewhere to break things before breaking them in production. If you’re starting from helpdesk or trying to write a CV with limited experience, a homelab is how you manufacture that experience.

In 2026 specifically, homelabs matter more because:

• The VMware exodus is real. Broadcom’s licensing changes have companies scrambling for alternatives. If you can demonstrate Proxmox skills, you’re valuable.
• Local AI is production-ready. Self-hosted LLMs aren’t a novelty anymore—they’re a genuine skill enterprises need.
• Automation is the dividing line. The difference between a £45k sysadmin and a £70k DevOps engineer is often automation skills. A homelab is where you build them.

The 2026 Hardware Reality Check

With RAM prices where they are, here’s my honest take on the hardware options. For a deeper dive into the buy vs build vs rent decision, see Getting Started: Buy, Build, or Rent?

Option 1: Your Old Laptop (Free, Start Today)

That ThinkPad gathering dust in your drawer? It’s a perfectly good homelab server.

I ran my first production services on a 2015 MacBook Pro with a failing battery. It worked. The built-in battery even acted as a basic UPS during power flickers.

What to do:

• Wipe it and install Ubuntu Server or Proxmox VE 9
• 8GB RAM? That’s enough for Docker, Pi-hole, and a few containers
• 16GB? You can run proper VMs and start learning virtualisation

Career value: “I repurposed aging hardware to reduce infrastructure costs” is a sentence that makes budget-conscious IT managers very happy.

Option 2: Raspberry Pi 5 (£35-80)

The Pi 5 is genuinely capable now. With 8GB of RAM and NVMe storage via a HAT, it handles real workloads. I’ve written a complete guide on this: Raspberry Pi 5 Homelab: 10 Projects That Actually Advance Your Career.

• Home Assistant for automation
• Pi-hole for network-wide ad blocking
• Docker containers for various services
• Lightweight Kubernetes with K3s

The Pi’s limitation is that 8GB ceiling—which, given current RAM prices, is actually looking quite reasonable for the money. For setup instructions, see Installing Ubuntu Server on Raspberry Pi with USB Boot.

Career value: ARM architecture experience. It’s not just for hobbies anymore—AWS Graviton, Azure Ampere, and countless edge deployments run on ARM.

Option 3: Refurbished Mini PCs (£100-300)

This is the 2026 sweet spot for anyone with a bit of budget. I’ve written a complete buying guide: Best Refurbished Mini PCs for Your Homelab in 2026.

Refurbished Dell OptiPlex, HP ProDesk, and Lenovo ThinkCentre units offer:

• Intel i5/i7 or Ryzen processors with proper multi-threading
• 32GB DDR4 (critically, DDR4—not the crisis-priced DDR5)
• NVMe storage at reasonable prices
• Low power consumption (15-45W typical)

My recommendation for 2026: Look for DDR4-based systems. DDR4 prices have also risen, but nothing like DDR5. A used Lenovo ThinkCentre Tiny or HP ProDesk Mini with 32GB DDR4 is genuinely more economical than a new DDR5 system with 16GB.

For a detailed comparison of Pi vs mini PC, see Raspberry Pi vs Mini PC: Which Should You Choose?

Career value: You’re running the same hardware class that powers edge computing, retail systems, and small office deployments. Real enterprise experience.

Option 4: Used Enterprise Gear (Variable)

Dell PowerEdge and HP ProLiant servers are cheap on eBay. But in 2026, I’d add a caveat: check the RAM situation before buying.

Older servers use DDR3 ECC or DDR4 ECC, which are more available than DDR5 but still affected by supply issues. Factor in power costs too—these things eat electricity. If you’re going this route, see my homelab rack build for what a full setup looks like.

Career value: Hands-on with enterprise-grade hardware. iDRAC/iLO remote management. Understanding of ECC memory and RAID controllers.

Option 5: Cloud VPS (Free to £5/month)

This is the 2026 plot twist: you don’t need physical hardware at all to start. I’ve written a complete comparison: Best VPS for Homelabs in 2026: Free Tiers and Budget Options.

Oracle Cloud Always Free is the most generous option right now:

• 2 AMD EPYC vCPUs
• Up to 24GB RAM
• 200GB storage
• Actually free, forever (not a 12-month trial)

That’s more powerful than most Raspberry Pi setups, and it costs nothing.

Important 2026 update: AWS changed their free tier in July 2025. The 12-month free EC2 access is gone for new accounts, replaced with limited credits valid for 6 months. If you’re starting fresh, Oracle Cloud is now the better option.

Azure still offers reasonable free tiers, especially for students (annual £80 credit, renewable each year you’re studying). For Azure specifically, see How to Learn Azure for Free. Google Cloud’s e2-micro instance remains free with 30GB storage.

Career value: Cloud infrastructure experience from day one. IaC practice with Terraform. Multi-cloud exposure that employers love.

The 2026 Software Stack

Hardware is just the canvas. Here’s what to actually run. For a complete services overview, see Homelab Essential Services: Build Your Full Stack.

Hypervisor: Proxmox VE 9.x

Proxmox isn’t just “the free VMware alternative” anymore. With version 9.x bringing OCI container support, improved backup features, and the new Datacenter Manager, it’s become the homelab standard.

If you’re running an older version, see my Proxmox VE 9 upgrade guide. For backups, there’s also a Proxmox Backup Server upgrade guide.

2025 was the year of the VMware exodus. Broadcom’s licensing changes pushed even enterprise shops to evaluate alternatives. If you learn Proxmox now, you’re learning the tool that many companies are actively migrating to.

Containers: Docker + Docker Compose

Still the foundation of everything. Learn Docker Compose properly—it’s how real deployments work.

Store your compose files in Git from day one. This single habit separates hobbyists from professionals.

Local AI: Ollama + Open WebUI

This is the big 2026 addition. Running large language models locally is now genuinely practical:

Ollama handles the model management and inference. It’s lightweight, works with CPU-only setups (though GPU helps), and makes running models like Llama 3, Mistral, or DeepSeek as simple as ollama run llama3.

Open WebUI gives you a ChatGPT-style interface for your local models. Your data never leaves your network.

On a mini PC with 32GB RAM, you can run 7-8B parameter models comfortably. On a system with a modest GPU (even a used GTX 1660), you can run larger models with reasonable speed.

Career value: “I’ve deployed and managed self-hosted LLM infrastructure” is a genuine differentiator in 2026. AI/ML ops skills are in massive demand.

Automation: n8n

n8n is the self-hosted workflow automation platform that’s quietly become essential for homelabs.

Unlike Zapier or Make, n8n runs entirely on your infrastructure. It connects to everything—Home Assistant, Docker, APIs, databases, your local Ollama instance—and lets you build genuinely useful automations:

• Service health monitoring with automatic restarts
• Backup verification and alerting
• AI-powered workflows using your local LLMs
• Self-healing infrastructure that responds to issues automatically

I’ve seen people build n8n workflows that wake servers via Home Assistant, spin up VMs through Proxmox’s API, and notify them on Discord—all triggered by a simple monitoring check.

Career value: Automation engineering is the skill that separates tiers. Companies pay significantly more for engineers who can build self-managing systems.

Secure Remote Access

For accessing your lab remotely, see What is ZTNA? Setting up Twingate for Your Homelab. Zero-trust is the modern approach, and it’s worth learning.

Security Fundamentals

Don’t skip security. See Secure Your Homelab for the essentials. Also consider working through Advent of Cyber for hands-on security learning.

Reverse Proxy: Nginx Proxy Manager or Traefik

Every homelab eventually needs proper ingress. Nginx Proxy Manager offers a web UI for managing routes and SSL certificates. Traefik integrates natively with Docker for automatic service discovery.

Either works. Pick one and learn it properly.

Dashboard: Glance or Homepage

A single-pane view of your services. These are more useful than they sound—especially when you’ve got 15 containers running and can’t remember which port Paperless is on.

The “Zero Hardware” Starting Path

If you’re reading this thinking “I can’t afford anything right now,” here’s a genuine path to starting for free:

1. Sign up for Oracle Cloud’s Always Free tier. You’ll get a VM with 24GB RAM—more than most starter hardware. Full details in Best VPS for Homelabs 2026.
2. Install Docker and Docker Compose. Learn containerisation fundamentals.
3. Deploy a few services: Uptime Kuma for monitoring, Nginx Proxy Manager for ingress, maybe Nextcloud for file storage.
4. Set up Ollama. Even on a free-tier VM, you can run smaller models (3-7B parameters).
5. Document everything. Keep notes, take screenshots, write up what you learned.

That’s a genuine homelab. It runs 24/7, it’s accessible from anywhere, and it demonstrates real skills—all without spending a penny.

Navigating the RAM Shortage: Practical Strategies

If you are buying hardware, here’s how to be smart about it:

Buy DDR4 systems, not DDR5. The price differential is massive right now. A DDR4 system with 32GB costs less than a DDR5 system with 16GB in many cases. See my refurbished mini PC guide for specific recommendations.

Consider used RAM. Memory sticks are durable. eBay, r/homelabsales, and local listings often have reasonable prices. Test thoroughly when you receive it.

Expand existing systems first. If you have a system with RAM slots available, upgrading is often cheaper than building new.

Buy now rather than later. I don’t usually give this advice, but multiple memory manufacturers are saying Q1-Q2 2026 will see even tighter supply as distribution stockpiles run out. If you need RAM, earlier is genuinely better.

Right-size your expectations. 32GB is the sweet spot for a starter homelab in 2026. It runs Docker, multiple VMs, local AI models. You don’t need 128GB to learn.

What to Actually Build

Don’t just collect services—build things with purpose:

Project 1: Self-Hosted Infrastructure Stack

• Reverse proxy with SSL (Nginx Proxy Manager)
• Monitoring (Uptime Kuma)
• Password manager (Vaultwarden)
• File sync (Nextcloud or Syncthing)

Career translation: “I built and maintain a multi-service infrastructure with TLS termination, monitoring, and automated alerting.”

Project 2: Local AI Environment

• Ollama with multiple models
• Open WebUI for interaction
• n8n workflows connecting AI to other services

Career translation: “I’ve deployed self-hosted LLM infrastructure with API integration and workflow automation.”

Project 3: Virtualisation Platform

• Proxmox installation and configuration
• VM templates for rapid deployment
• Backup automation with Proxmox Backup Server

Career translation: “I manage a hypervisor environment with templating, scheduled backups, and disaster recovery capability.”

Essential Linux Skills

Whatever hardware you choose, you’ll need solid Linux fundamentals. These articles will help:

• Linux Commands That Get You Hired
• Mastering systemctl for Service Management
• apt Package Management Essentials
• Linux File Permissions Deep Dive

What’s Changed Since 2025

If you read last year’s guide, here’s what’s different:

• RAM prices: The situation has dramatically worsened. Budget accordingly.
• AWS free tier: Significantly reduced for new accounts. Oracle Cloud is now the recommendation.
• Local AI: Moved from “interesting experiment” to “essential skill.”
• Proxmox: Version 9.x cements it as the homelab hypervisor standard.
• Workflow automation: n8n has matured significantly. Self-healing homelabs are genuinely achievable.
• VMware: The Broadcom situation makes Proxmox skills more valuable than ever.

Getting Started This Weekend

Here’s the minimum viable homelab for 2026:

1. Pick your hardware (old laptop, Pi, mini PC, or free cloud VM)
2. Install Proxmox or Ubuntu Server with Docker
3. Deploy one useful service (Pi-hole, Uptime Kuma, or Vaultwarden)
4. Document what you did
5. Add to your CV under “Personal Infrastructure Projects”

That’s it. You have a homelab. Everything else is iteration.

Next Steps

Depending on your situation, these guides will help you go deeper:

• Zero budget? Best VPS for Homelabs 2026 covers all the free cloud options
• Got £50-100? Raspberry Pi 5 Homelab Guide maximises your investment
• Got £150-300? Best Refurbished Mini PCs gets you serious hardware
• Want to cluster? Pi Cluster Build Shopping List for multi-node setups

Resources

• Proxmox VE Downloads
• Ollama – Local LLM Runner
• n8n Self-Hosting Documentation
• Oracle Cloud Always Free Tier
• Cloud Free Tier Comparison (GitHub)

The RAM shortage is real. The opportunity is also real. Don’t let hardware costs be the excuse that stops you from building skills that translate directly to higher-paying roles.

Your homelab doesn’t have to be expensive. It just has to exist.

---

Questions about getting started? Running into issues? Drop a comment on our socials. I read everything.