VDS and nested virtualization: run VMs inside your server

A HyperDC VDS is a virtual server with larger allocations, NVMe storage and one feature a VPS does not have: nested virtualization. The processor's virtualization extensions are passed through to your system, so you can run your own virtual machines, a hypervisor, WSL 2 or emulators inside it. This guide checks that it works and starts the most common tools. Compare plans on the VDS hosting page.

Before you start

• A Linux, Windows or macOS VDS, or a nested dedicated server. VPS plans do not offer nested virtualization.
• Expect overhead: nested machines are slower than machines on bare metal, especially for disk and network I/O.

Step 1: Check that the extensions are visible

grep -Ec '(vmx|svm)' /proc/cpuinfo
lscpu | grep -i virtualization
ls -l /dev/kvm

sudo apt install cpu-checker
kvm-ok

Get-ComputerInfo -Property HyperV*
systeminfo | findstr /i "Hyper-V virtualization"

Step 2a: KVM and libvirt on Linux

Install the hypervisor and the management tools:

sudo apt install qemu-system-x86 libvirt-daemon-system virtinst
sudo usermod -aG libvirt $USER

Log out and in again so the group applies, then check the host:

virt-host-validate qemu
virsh list --all

Verify: virt-host-validate reports PASS for hardware virtualization and /dev/kvm. Create machines with virt-install or a graphical tool such as virt-manager over SSH. To reach a service in a guest from outside, forward a port: see ports and port forwarding.

Step 2b: Hyper-V on Windows Server

In PowerShell as administrator:

Install-WindowsFeature -Name Hyper-V -IncludeManagementTools -Restart

The server restarts. Afterwards, open Hyper-V Manager or use the Get-VM and New-VM cmdlets. Microsoft documents nested Hyper-V with Hyper-V as the outer hypervisor; on other platforms it usually works but is outside Microsoft's support, so test your setup first.

Step 2c: WSL 2 on Windows Server

On Windows Server 2022 and 2025:

wsl --install

Restart when asked, then run wsl -l -v to see the installed distribution and its WSL version.

Step 2d: Proxmox VE and emulators

• Proxmox VE can run nested for labs and training. Follow the Proxmox documentation on nested virtualization, and use a dedicated server for production clusters.
• Android emulators and other tools that need virtualization extensions run on a Windows VDS or a nested dedicated server; graphics-heavy apps need more resources.

macOS VDS

macOS VDS plans offer nested virtualization too, so tools that start their own virtual machines can run inside your Mac. macOS VPS plans, including Apple Silicon macOS VPS, do not. See macOS VPS and VDS.

Performance tips

• Give nested machines virtio disks and network adapters where the guest supports them.
• Do not assign more vCPUs or memory to guests than the VDS has.
• Keep heavy disk work, such as databases, outside nested guests when you can.

Troubleshooting

kvm-ok says KVM acceleration cannot be used. The extensions are not visible: you are on a VPS, or the server needs a restart after a plan change. Check grep -Ec '(vmx|svm)' /proc/cpuinfo, and open a ticket if it is zero on a VDS.

Hyper-V installation fails with a virtualization error. The extensions are not passed through. Check Get-ComputerInfo -Property HyperV* and open a ticket with the output.

WSL reports that virtualization is not enabled. The same cause; also make sure the Virtual Machine Platform component installed and the server restarted.

Next steps

• Compare lines: VPS vs VDS vs dedicated server.
• Bare-metal hypervisors: dedicated servers.