How to Install Windows Server on Hetzner VPS (Free & Works in 2025) Avoid MISTAKES!

You want to run a Windows Server but don’t want to pay expensive licensing fees or deal with complicated installations on dedicated servers from Kimsufi, OVH, or SoYouStart.

Installing Windows Server on Hetzner VPS is now completely free and much easier than traditional dedicated server setups. You can get a fully functional Windows Server instance with remote desktop access in under an hour.

You also need to deal with drivers, activation, and security issues. If you make a mistake, you could damage your server or lose your data.

Don’t worry, there is a simple and free way to install Windows Server on Hetzner Cloud VPS.

In this comprehensive guide, I will show you the complete process with detailed step-by-step instructions from creating your Hetzner Cloud account to connecting via Remote Desktop Connection.

You will learn how to set up the server, attach Windows ISO files, install drivers for hard disk and ethernet, and finally configure remote desktop access from your computer.

By following this guide, you will save time, money, and hassle while getting a powerful Windows Server environment.

Note: This guide & video is only for educational purposes.

🎁 Exclusive €20 Hetzner Credit

Before we start, I have an exclusive €20 coupon from Hetzner which you can use if you don’t have any existing account. Just click on this link and it will give you €20 credit which you can use to build this VPS server and essentially use it for a couple of months for free.

Step 1: Create Your Hetzner Cloud Account

First, you need to click on the exclusive discount link or go into Hetzner Cloud and make sure to go into either the main page or just click “Sign Up” to create an account.

Account Registration Process

1. Click “Register now”
2. Provide email address and password – Make sure to save the password securely
3. Click “Continue”
4. Email verification: They will send a verification link which you need to click to verify the email address
5. Complete verification: Once done, it shows “verification is complete”

Personal Details Setup

You’ll need to fill out personal details and contact information. Please provide it as accurately as possible because they will be using these details for invoice purposes.

• Fill out personal information accurately
• Select your preferred currency (cannot be changed afterwards) – I recommend keeping it as Euros
• Add payment method details

Payment Method Verification

This step is very important: even though they are giving free credits and coupons, they need to validate you because they want to protect themselves from mass account creation or spam.

• Provide your credit card or debit card details
• Make sure to check the box to save your details (this is important, otherwise it won’t let you continue)
• They will do a demo transaction to validate that it’s a valid debit or credit card

Once successful, you’ll see “I have successfully signed up” confirmation.

Two-Factor Authentication (Recommended)

The system will give you an option to enable two-factor authentication, which is an additional security measure. I recommend adding this part just to be on the safe side. If you don’t want it, you can click “Skip”.

Account Verification Process

Since this is your first time creating an account, they have one more verification step. It might ask: “Before you can use account data to verify, please log to this” and direct you to a verification section.

Important Note: You might see a message saying “our automated system checks indicate that your account has an increased level of risk.” This might be happening for everyone or may not happen to you, but if it does, you need to upload a document for manual verification.

In my case, I had to do manual verification by sending a message to them with personal details, which they verified for me.

Step 2: Create a New Project

Now we need to create a new project. When I click on “New Project,” it should now allow me to create one (after verification is complete).

• Click “New Project”
• Name it something like “Windows Server” – make it something easy to remember in case you have multiple servers
• Click on the project to access its dashboard
• Go to “Servers” section
• Click “ADD SERVER”

Step 3: Server Configuration and Setup

Selecting Server Location

Here are some important points about server location:

• If there are any messages, they will show you here along with all the details of what you have selected
• You can select a location anywhere you want
• Depending on the location, the price might change, so check whichever one suits you best

Operating System Selection

We are going to be installing Windows Server, but we need some root access first to start the installation process, so we’re going to keep the default as Ubuntu and change it later.

Server Specifications

You need to select the architecture of your VPS. This is also dependent on the locations, so depending on your chosen location, you will get access to different options.

For this tutorial, I’m selecting the lowest specifications to give you the lowest cost possible:

• 2 virtual CPUs
• 2 GB RAM
• 40 GB SSD disk
• Monthly bandwidth traffic of 1TB

This configuration costs around €5 per month.

Important: Auto-Scaling Setting

One important thing to note: I personally recommend unchecking the auto-scaling option. Here’s why:

• If you don’t want the server to automatically resize depending on your needs, go to “Rescale” and turn this off
• Otherwise, it might resize to a more powerful plan if you need more resources
• Read through the options depending on your use case, but I recommend unchecking this to keep it at the original specifications

You can adjust the server name (for example, “Windows-1”) and then click “Create and Buy.” The system will now set up the server for you, showing notifications about creating primary public IP, server location, and completion status.

Step 4: Windows Installation Process

Mounting Windows ISO

Now we need to install Windows on this server. To do this:

1. Go to “ISO Images” – you’ll see lots of different ISO images available
2. Search for “Windows” – these are the different types of Windows Server options available

Available Windows Server versions include:

• English edition and foreign language versions
• Windows Server 2016
• Windows Server 2019
• Windows Server 2022
• Windows Server 2025

There’s no specific requirement – you can choose whichever version you want. For this tutorial, I’m selecting Windows Server 2022 English.

Click the “Mount” button to mount this Windows image to your server. Once mounted, it will change to “Unmount,” which means the image is attached to the server.

Accessing Server Console

Once the ISO is mounted:

1. Click on “Console” – this opens the server in a console window
2. Make sure to click on “GUI mode”
3. Click “Ctrl + Alt + Delete” – this enables graphical access and allows you to use keyboard and mouse properly

You should see that the Windows Server installation process has already started.

Windows Installation Steps

1. Language Selection: Click “Next,” select your language and preferences
2. Click “Install Now”
3. Server Version Selection: Based on the server we selected, you’ll have several options. I recommend selecting any of the “Standard” with “Desktop Experience”

Important: When you include “Desktop Experience,” it will enable much better support when connecting through Remote Desktop, so make sure to select that option.

4. Click “Next”
5. Accept the license terms
6. Click “Custom” for installation type

Note: Don’t worry about the slowness – this is because we’re connecting through console, but when you connect through Remote Desktop, it will be much faster.

Driver Installation (Critical Step)

At this point, it will not find any drives because we don’t have the necessary drivers. Here’s what you need to do:

1. Go back to the ISO Images page
2. Search for “Windows” again
3. Look for “Windows Driver” – we need the ISO version
4. Select the latest driver version to avoid compatibility issues
5. Click “Mount” – this will temporarily unmount the Windows image and mount the driver

This driver contains all the necessary drivers to make sure your server hardware works properly.

Loading Drivers in Windows Installer

1. In the Windows installer, click “Load Driver”
2. Click “Browse”
3. Navigate to the CD drive (which contains the mounted drivers)
4. Scroll down until you see “VirtIO-SCSI”
5. Expand that folder
6. Select the Windows version you’re installing (e.g., “22” for Windows Server 2022)
7. Select the appropriate subfolder and click “OK”

The installer will automatically find and present the driver. Click “Next” to install this driver, which enables access to the hard disk for creating Windows Server partitions.

Re-mounting Windows ISO

After the driver installation:

1. Go back to ISO Images
2. We no longer need the driver ISO
3. Mount the Windows Server installation ISO again

Disk Partitioning

Now you can see all the available drivers. Here’s what to do:

1. Delete all existing partitions – these were created by Ubuntu initially and are no longer needed
2. You’ll be left with blank unallocated space
3. Click “New” to create a partition
4. For a single drive partition, use the entire amount or partition it as needed
5. The system will automatically create a small system reserve for Windows to load properly
6. Click “Next”

Now wait for the installation to complete. Depending on your server configuration, this will take some time.

Step 5: Windows Server Configuration

Initial Windows Setup

Once installation is complete:

1. Unmount the Windows image – we don’t want to repeat the installation process
2. The system will ask you to create a password for your administrator account
3. Create a strong password and remember it
4. You’ll reach the login screen

Logging In for the First Time

1. Click the button that equals pressing Ctrl+Alt+Delete
2. Enter the password you created
3. Wait for the Server Manager welcome screen to load

Server Manager Configuration

There are several important settings to configure:

1. Close the Server Manager properties and disable automatic startup if desired
2. Go to “Local Server”
3. Turn off Internet Explorer Enhanced Security – this removes security warnings when visiting websites

Enabling Remote Desktop (Critical)

This is essential for accessing your server remotely:

1. Go to “Remote Desktop”
2. Click on “Disabled”
3. Select “Allow remote desktop for this connection”
4. Click “OK” and then “Apply”

It might still show as disabled due to caching, but refresh the page and it should show as enabled.

Step 6: Installing Essential Drivers

We still need to install drivers for internet access and other hardware components.

Mounting Driver ISO Again

1. Go back to ISO Images
2. Mount the Windows drivers again
3. Open “Device Manager” – type “device” in the search if you don’t see it

Installing Network Drivers

In Device Manager, you’ll see drivers with yellow warning signs that need to be installed:

1. Right-click on the first driver and select “Update driver”
2. Click “Browse my computer”
3. Click “Browse” and select the CD drive
4. Click “Next” – it will automatically find matching drivers

Once installed, you should see automatic network connection, which is essential for internet access.

Installing Remaining Drivers

Repeat the same process for all remaining drivers with yellow warning signs:

• Right-click → Update driver
• Browse my computer
• Select CD drive
• Let it automatically install

Continue this process for:

• Graphics/Display drivers
• Simple Communication Controller
• Any other missing drivers

Testing Internet Connectivity

Once all drivers are installed:

1. Open Internet Explorer
2. Try accessing a website to confirm internet connectivity
3. You should see websites loading properly

Windows Updates (Recommended)

Before connecting via Remote Desktop, it’s a best practice to install Windows updates:

• Go to Windows Update settings
• Install all available updates
• This ensures better security and system stability

Step 7: Connecting via Remote Desktop

Now comes the exciting part – connecting to your Windows Server from your local computer!

Getting Server IP Address

1. Go back to your Hetzner dashboard
2. Find the server’s public IP address
3. Copy this IP address

Setting Up Remote Desktop Connection

On your local Windows computer:

1. Open “Remote Desktop Connection”
2. Paste the server IP address
3. Enter username: “Administrator”
4. Save password if desired
5. Keep display settings as default unless you have specific performance requirements

Establishing Connection

1. Click “Connect”
2. Enter the administrator password you created
3. Click “OK”
4. You’ll get a certificate exception – click “Yes” to accept (this won’t show again)

Congratulations! You should now be successfully connected to your Windows Server via Remote Desktop.

Verifying Server Specifications

To verify everything is working correctly:

• Open “This PC” to see drive space
• Go to “System Properties” to see processor and memory details
• Confirm all specifications match what you selected

Troubleshooting Common Issues

Account Verification Problems

• Risk Assessment Message: If you see automated system warnings about account risk, don’t panic. This is normal for new accounts.
• Manual Verification: You may need to submit documents or contact support with personal details.
• Response Time: Manual verification typically takes 24-48 hours.

Installation Issues

• No Drives Found: Ensure you’ve properly loaded the VirtIO-SCSI drivers before proceeding with partitioning.
• Slow Console Performance: This is normal through the web console. Performance improves dramatically once you connect via Remote Desktop.
• Driver Not Found: Make sure you’re selecting the correct Windows version folder in the driver ISO.

Connectivity Problems

• No Internet: Ensure all network drivers are properly installed in Device Manager.
• Remote Desktop Won’t Connect: Verify Remote Desktop is enabled in Local Server settings.
• Certificate Errors: These are normal for new servers – accept the certificate to proceed.

Security Best Practices

Once your server is running, implement these security measures:

Immediate Security Steps

• Change default passwords to strong, unique passwords
• Enable Windows Firewall with appropriate rules
• Install Windows updates regularly
• Consider changing the default RDP port from 3389 to a custom port

Ongoing Maintenance

• Install antivirus software
• Set up regular backups
• Monitor system performance
• Review and update security settings periodically

Cost Breakdown and Pricing

Here’s what this setup costs you:

• Server Cost: €5/month for basic configuration (2 vCPU, 2GB RAM, 40GB SSD)
• Windows License: FREE (included with Hetzner’s ISO images)
• Setup Cost: FREE (no installation fees)
• First Month: FREE with our €20 coupon

This is significantly cheaper than traditional dedicated servers from Kimsufi, OVH, or SoYouStart, which often charge extra for Windows licenses and installation services.

Performance Optimization Tips

• Disable unnecessary services to free up resources
• Optimize Remote Desktop settings for your connection speed
• Use SSD storage efficiently by managing temporary files
• Monitor bandwidth usage to stay within the 1TB monthly limit

Use Cases and Applications

This Windows Server setup is perfect for:

• Development and Testing: Create isolated environments for software development
• Remote Work: Access Windows applications from anywhere
• Small Business Applications: Run Windows-specific business software
• Learning and Education: Practice Windows Server administration
• Automation Tasks: Run scheduled tasks and scripts

Advantages Over Alternatives

Compared to traditional dedicated server providers:

• Cost-Effective: No Windows licensing fees
• Quick Setup: Ready in under an hour vs. days for dedicated servers
• Flexible Scaling: Easy to upgrade resources when needed
• Modern Infrastructure: SSD storage and latest hardware
• Reliable Network: Excellent bandwidth and uptime

Conclusion

Let us know if you installed Windows on your server by dropping “Yes” and sharing your experience in the comments!

You have learned how to create a Windows server without any technical knowledge in Hetzner, which is very fast, very easy, and an updated solution.

To automate various tasks related to your server management, you might find a tool like Pabbly Connect useful. Read our Pabbly Connect Review to learn more about this Zapier alternative.

You have successfully followed all the steps from creating your Hetzner Cloud account to connecting via Remote Desktop. You now have a fully functional Windows Server that you can access from anywhere in the world.

But you’re not done yet. You still need to secure your Windows server and optimize its performance. You need to update Windows, install antivirus software, configure firewall rules, and tweak some settings.

You also need to monitor your server’s health and performance, and troubleshoot any issues that may arise.

Don’t worry, I have you covered. In the next guide, I will show you how to secure and optimize your Windows server.

You will learn how to use the best tools and practices to keep your server safe and fast.

You will also learn how to backup your data and restore it in case of disaster. By following this guide, you will make the most out of your Windows server.

If you encounter any problems, ask me in the comments and I will fix it for you. If you need any more help, also let me know and I will try to do my best!