Setup Always Free VPS with 4 OCPU, 24GB RAM, and 200GB Storage: The Ultimate Oracle Cloud Guide 2026

Hi there 👋,

Welcome back to another exciting journey into the modern infrastructure and cloud hosting landscape. Today, we’re diving deep into the realm of professional-grade hosting for $0 using Oracle Cloud’s Always Free tier.

📑 In this tutorial, we’ll explore how to break free from platform limitations and provision a powerhouse VPS with 4 ARM-based OCPUs, 24GB of RAM, and 200GB of SSD storage. We will walk through the entire process, from navigating regional capacity challenges to setting up a “private Vercel” environment with Coolify. This approach will enable you to enhance modularity, eliminate hosting costs, and ensure 100% control over your high-traffic applications. Are you ready to take your DevOps skills to the next level? Let’s get started! 🎉

Oracle Cloud Infrastructure (OCI) offers a generous “Always Free” tier designed to let developers build and test applications. Unlike trial periods that expire, these resources remain free as long as your account is active.

## Pros 💪

Unrivaled Resources: You get up to 24 GB of RAM and 4 OCPUs, which can handle heavy full-stack applications and high traffic.
Generous Bandwidth: Includes 10 TB of monthly outbound data transfer.
Persistent Storage: Up to 200 GB of NVMe SSD storage for your databases and files.

## Cons 👎

Complex Setup: Unlike one-click deployments, you must manage the Linux OS, firewalls, and networking manually.
Regional Capacity: High demand means ARM resources are often “Out of Capacity” in certain regions.

Setting up the Cloud Server Instance

#1: Account Creation & Region Selection

Create an Account with your details.
Identity Verification: You will need a valid credit/debit card. Oracle performs a temporary $1 authorization hold to verify your identity.
The Home Region Trap: You must select a Home Region that supports “Ampere A1” ARM shapes. Always Free resources are restricted to this single region and cannot be changed later. Large regions with three Availability Domains (like **US East-Ashburn** or **UK South-London**) generally offer better hardware availability than single-AD regions.

#2: Create the “Always Free” VM Instance

Navigate to Compute > Instances > Create Instance.

Image: Select Canonical Ubuntu 24.04 Minimal aarch64. The “aarch64” version is required for ARM processors.
Shape: Change the shape to Ampere (ARM-based). Move the sliders to allocate the full 4 OCPU and 24 GB RAM.
Capacity Type: Select On-demand capacity to ensure your server isn’t preempted (stopped) during high demand.

#3: Security and SSH Keys

In the Security section, leave “Shielded Instance” and “Confidential Computing” disabled. These are often incompatible with ARM shapes or add unnecessary complexity for a standard web server.

Select “Generate a key pair for me” and click “Download private key.” You must save this file now; you cannot retrieve it once the instance is created.

#4: Networking and Primary VNIC

VCN & Subnet: Choose to create a new Virtual Cloud Network (VCN) and a Public Subnet.
Public IP: Ensure “Assign a public IPv4 address” is toggled ON. Without this, your server cannot be reached from the internet.

#5: Maximizing Boot Volume

Oracle defaults the storage to roughly 50GB. Toggle on “Specify a custom boot volume size” and set it to 200 GB. This ensures you utilize your full free storage quota.

Before you hit the final Create button at the bottom of the page, quickly verify the settings one last time. If all is good, let’s create the Instance. 🎉

⚠️ Navigating the “Out of Capacity” Error

If you receive an “Out of capacity” error upon clicking Create, it means the ARM hardware pool in your data center is currently full. Here are the two primary solutions:

Change Availability Domains: If your region has multiple domains (AD-1, AD-2, AD-3), try switching between them in the Placement section.
Upgrade to Pay As You Go: This is the most reliable fix. By upgrading your account, Oracle gives you priority access to hardware. You will still not be charged as long as you stay within the Always Free limits.

⚠️ Assigning a Public IP Address

If your server currently does not have a Public IPv4 address assigned. You must fix this first before you can connect.

Since the “Public IPv4 address” field is empty, follow these steps in your Oracle Console:

On the Instance Details page (where you are now), scroll down to the Resources list on the left and click Attached VNICs.
Click the name of the Primary VNIC (e.g., vinojans-personal-vnic).
On the VNIC Details page, scroll down to Resources and click IP Addresses.
Click the three dots (menu icon) next to the Primary Private IP address and select Edit.
In the dialog, select Ephemeral Public IP and click Update.
Once the page refreshes, you will see a Public IP Address. Copy it.

Accessing and Configuring the Server

SSH Connection

Use the following command in your terminal to connect: ssh -i "path/to/your/key.key" ubuntu@your-public-ip

⚠️ Troubleshooting “Private Key Permissions”:

Windows is very picky about key file security. If you get an error saying “Permissions for ‘your-key.key’ are too open,” do this:

Right-click your key file > Properties > Security > Advanced.
Click Disable inheritance and choose “Remove all inherited permissions.”
Click Add > Select a principal > type your Windows username > click OK.
Ensure only Read is checked. Click OK on all windows.

Secure the Server (OS Hardening)

Oracle’s Ubuntu images come with a default firewall (iptables) that is very restrictive. You must open the ports on the OS level, even if they are open in the Oracle Console.

Run these commands in your SSH terminal:

SSH Terminal

# Update everything
sudo apt update && sudo apt upgrade -y
 
# Open ports for Web traffic (80/443) and Coolify (8000)
sudo iptables -I INPUT 6 -p tcp --dport 80 -j ACCEPT
sudo iptables -I INPUT 6 -p tcp --dport 443 -j ACCEPT
sudo iptables -I INPUT 6 -p tcp --dport 8000 -j ACCEPT
 
# Save the rules so they survive a reboot
sudo netfilter-persistent save

80 (HTTP), 443 (HTTPS), and 8000 (Coolify)

Install the Deployment Manager (Coolify)

Coolify is the best “private Vercel” for your own server. It will handle your Next.js builds, Docker containers, and SSL certificates automatically.

1. Installing Coolify:

SSH Terminal

curl -fsSL https://cdn.coollabs.io/coolify/install.sh | sudo bash

2. Verify the Installation:

SSH Terminal

docker ps --format "table {{.Names}}\t{{.Status}}\t{{.Ports}}"

You should see containers like coolify, coolify-db, and coolify-proxy with a status of "Up" or "Healthy".

Once confirmed, visit http://your-public-ip:8000 to set up your admin account and start deploying your Next.js or full-stack applications.

By following these steps, you have transformed a restricted “Hobby” hosting setup into a professional, high-capacity environment that grows with your projects — all for zero cost. 🎊

I appreciate you taking the time to read this article.🙌

Before you move on to explore the next article, don’t forget to give your claps 👏 for this article and leave your feedback💭 in the comment section. Stay connected with me on social media. Thanks for your support and have a great rest of your day! 🎊

✍️ Vinojan Veerapathirathasan.

Hi there 👋,

## Pros 💪

Unrivaled Resources: You get up to 24 GB of RAM and 4 OCPUs, which can handle heavy full-stack applications and high traffic.
Generous Bandwidth: Includes 10 TB of monthly outbound data transfer.
Persistent Storage: Up to 200 GB of NVMe SSD storage for your databases and files.

## Cons 👎

Complex Setup: Unlike one-click deployments, you must manage the Linux OS, firewalls, and networking manually.
Regional Capacity: High demand means ARM resources are often “Out of Capacity” in certain regions.

Setting up the Cloud Server Instance

#1: Account Creation & Region Selection

Create an Account with your details.
Identity Verification: You will need a valid credit/debit card. Oracle performs a temporary $1 authorization hold to verify your identity.
The Home Region Trap: You must select a Home Region that supports “Ampere A1” ARM shapes. Always Free resources are restricted to this single region and cannot be changed later. Large regions with three Availability Domains (like **US East-Ashburn** or **UK South-London**) generally offer better hardware availability than single-AD regions.

#2: Create the “Always Free” VM Instance

Navigate to Compute > Instances > Create Instance.

Image: Select Canonical Ubuntu 24.04 Minimal aarch64. The “aarch64” version is required for ARM processors.
Shape: Change the shape to Ampere (ARM-based). Move the sliders to allocate the full 4 OCPU and 24 GB RAM.
Capacity Type: Select On-demand capacity to ensure your server isn’t preempted (stopped) during high demand.

#3: Security and SSH Keys

Select “Generate a key pair for me” and click “Download private key.” You must save this file now; you cannot retrieve it once the instance is created.

#4: Networking and Primary VNIC

VCN & Subnet: Choose to create a new Virtual Cloud Network (VCN) and a Public Subnet.
Public IP: Ensure “Assign a public IPv4 address” is toggled ON. Without this, your server cannot be reached from the internet.

#5: Maximizing Boot Volume

Oracle defaults the storage to roughly 50GB. Toggle on “Specify a custom boot volume size” and set it to 200 GB. This ensures you utilize your full free storage quota.

Before you hit the final Create button at the bottom of the page, quickly verify the settings one last time. If all is good, let’s create the Instance. 🎉

⚠️ Navigating the “Out of Capacity” Error

If you receive an “Out of capacity” error upon clicking Create, it means the ARM hardware pool in your data center is currently full. Here are the two primary solutions:

Change Availability Domains: If your region has multiple domains (AD-1, AD-2, AD-3), try switching between them in the Placement section.
Upgrade to Pay As You Go: This is the most reliable fix. By upgrading your account, Oracle gives you priority access to hardware. You will still not be charged as long as you stay within the Always Free limits.

⚠️ Assigning a Public IP Address

If your server currently does not have a Public IPv4 address assigned. You must fix this first before you can connect.

Since the “Public IPv4 address” field is empty, follow these steps in your Oracle Console:

On the Instance Details page (where you are now), scroll down to the Resources list on the left and click Attached VNICs.
Click the name of the Primary VNIC (e.g., vinojans-personal-vnic).
On the VNIC Details page, scroll down to Resources and click IP Addresses.
Click the three dots (menu icon) next to the Primary Private IP address and select Edit.
In the dialog, select Ephemeral Public IP and click Update.
Once the page refreshes, you will see a Public IP Address. Copy it.

Accessing and Configuring the Server

SSH Connection

Use the following command in your terminal to connect: ssh -i "path/to/your/key.key" ubuntu@your-public-ip

⚠️ Troubleshooting “Private Key Permissions”:

Windows is very picky about key file security. If you get an error saying “Permissions for ‘your-key.key’ are too open,” do this:

Right-click your key file > Properties > Security > Advanced.
Click Disable inheritance and choose “Remove all inherited permissions.”
Click Add > Select a principal > type your Windows username > click OK.
Ensure only Read is checked. Click OK on all windows.

Secure the Server (OS Hardening)

Oracle’s Ubuntu images come with a default firewall (iptables) that is very restrictive. You must open the ports on the OS level, even if they are open in the Oracle Console.

Run these commands in your SSH terminal:

SSH Terminal

# Update everything
sudo apt update && sudo apt upgrade -y
 
# Open ports for Web traffic (80/443) and Coolify (8000)
sudo iptables -I INPUT 6 -p tcp --dport 80 -j ACCEPT
sudo iptables -I INPUT 6 -p tcp --dport 443 -j ACCEPT
sudo iptables -I INPUT 6 -p tcp --dport 8000 -j ACCEPT
 
# Save the rules so they survive a reboot
sudo netfilter-persistent save

80 (HTTP), 443 (HTTPS), and 8000 (Coolify)

Install the Deployment Manager (Coolify)

Coolify is the best “private Vercel” for your own server. It will handle your Next.js builds, Docker containers, and SSL certificates automatically.

1. Installing Coolify:

SSH Terminal

curl -fsSL https://cdn.coollabs.io/coolify/install.sh | sudo bash

2. Verify the Installation:

SSH Terminal

docker ps --format "table {{.Names}}\t{{.Status}}\t{{.Ports}}"

You should see containers like coolify, coolify-db, and coolify-proxy with a status of "Up" or "Healthy".

Once confirmed, visit http://your-public-ip:8000 to set up your admin account and start deploying your Next.js or full-stack applications.

By following these steps, you have transformed a restricted “Hobby” hosting setup into a professional, high-capacity environment that grows with your projects — all for zero cost. 🎊

I appreciate you taking the time to read this article.🙌

✍️ Vinojan Veerapathirathasan.