Digital real estate is another portfolio worth having. And by digital real estate I’m referring specifically to servers, yes, computers in the cloud. I’ve only had one so far, a decent server on Hetzner where I host some of my prized possessions, like my Hermes AI agent. But this week I expanded my portfolio, so to speak, and it didn’t cost me a dime. I know, I’m just as surprised as you. I got a completely free Oracle Cloud server on their Always Free tier, one that comes with 24GB of RAM, 4 CPU cores, and 47GB of storage, and unless I do something silly like spin up paid services by accident, I will never get a bill for it.
Let me walk you through how I got here, what I ran into along the way, and what I’m planning to build on it next.
How to Set Up an Oracle Cloud Always Free Tier VM
Before getting into the setup, it is worth understanding what you are actually getting. Oracle Cloud offers what they call an Always Free tier. Unlike AWS or Google Cloud which give you free resources for 12 months and then start charging, Oracle’s Always Free resources stay active for the life of your account. No expiry date, no surprise bills as long as you stay within the limits.
The star of the show is the Ampere A1 Flex instance. You get up to 4 OCPUs, 24GB of RAM, and 47GB of block storage completely free. To put that in perspective, that is more compute than most entry level paid cloud instances from other providers. The math works out so that running one instance at full capacity uses just under the monthly free allowance, meaning you will never accidentally exceed it just by leaving your server running.
To get started, head to oracle.com/cloud/free and create an account. You will need a valid credit card for verification. A small temporary hold may appear but it is removed. As long as you stay within Always Free limits no charges are applied. Once your account is live, go to the Oracle Cloud console, navigate to Compute then Instances, and click Create Instance. Select the VM.Standard.A1.Flex shape, set your OCPUs to 4 and memory to 24GB, configure your boot volume at 47GB, and launch.
One more thing. Do not be discouraged if you hit an out of capacity error on your first attempt. Almost everyone does. The fix is in the next section.
The Capacity Problem and How I Solved It
Here is where it gets slightly counterintuitive. When I first tried to provision the Ampere A1 instance on the standard free account I kept hitting an out of capacity error. This is extremely common. The free tier Ampere A1 instances are in high demand and Oracle almost always shows that error if you try to provision one without upgrading.
The fix that actually worked was upgrading to a Pay As You Go account. I know that sounds alarming but it is not. Upgrading to Pay As You Go gives you access to more capacity while your Always Free resources remain completely free. As long as you only provision resources within the Always Free limits you will never be charged.
The moment I made that switch the instance provisioned without issues. The first thing I did after that was set up a budget alert in the Oracle Cloud console so I get notified immediately if anything looks like it might incur a charge. That one step removes any anxiety about accidental billing and lets you experiment freely.
The Specs I Ended Up With
Once the instance was live here is exactly what I got:
- Shape: VM.Standard.A1.Flex
- OCPU count: 4
- Memory: 24GB
- Network bandwidth: 4 Gbps
- Storage: 47GB block storage
This is running Oracle Linux on an ARM based Ampere processor. The ARM architecture is worth being aware of when installing software. Not everything has ARM compatible builds out of the box so you sometimes need to check that the tool you want to install supports it. For most popular open source tools in 2026 this is not an issue but it is worth knowing upfront.
How It Compares to My Hetzner Server
I have been running a Hetzner VM as my main server for a while now. It hosts my n8n automation setup, my Hermes AI agent named Lollie, and a few web projects. At $7.99 a month it is affordable and reliable. But putting the two side by side is an interesting comparison.
| Hetzner VM | Oracle Cloud Free VM | |
|---|---|---|
| CPU | 4 vCPU | 4 OCPU |
| RAM | 8GB | 24GB |
| Storage | 40GB | 47GB |
| Bandwidth | 20TB out | 10TB out |
| Monthly cost | $7.99 | Free |
Oracle wins heavily on RAM, 3x more than Hetzner for zero cost. Hetzner edges ahead on bandwidth with 20TB versus Oracle’s 10TB. But for most personal projects and development work 10TB of outbound bandwidth is more than enough.
That said I am keeping both servers. Hetzner runs my production services on a stable x86 architecture. Oracle gives me a dedicated space for experimentation without the risk of touching anything on my main setup. Think of it like having a workshop separate from your main office. You do the messy experimental work in the workshop and keep the office clean.
What I Am Planning to Build on It
A 24GB RAM ARM server opens up some genuinely useful possibilities and I have a few things in mind.
The first thing I want to explore is using it for AI workshops. One of my goals is to run hands on sessions where participants set up their own personal AI assistants. A server with this much RAM can handle multiple concurrent users running lightweight AI models at the same time. That makes it a strong candidate for hosting a shared environment during a workshop without everyone needing their own dedicated server.
I am also considering using it to run local language models via Ollama. With 24GB of RAM, smaller quantised models run comfortably, which means I could have a private AI setup that does not send any data to external APIs. There is something satisfying about that level of control.
For now the server is live, secured, and ready. The next step is deciding what goes on it first and I will document that here when I do.
Is the Oracle Always Free Tier Worth It
Honestly, yes. The process was not completely smooth, the capacity issue meant I had to go through the Pay As You Go route, but the end result is a genuinely powerful server that costs nothing to run month after month.
If you are a developer, a builder, or just someone curious about running your own cloud infrastructure, this is one of the best free resources available right now. The fact that it does not expire sets it apart from every other major cloud provider’s free offering.
Just set up a budget alert the moment your account is live. That one step removes any anxiety about accidentally incurring charges and lets you experiment freely knowing you are protected.
FAQ
How does Oracle Cloud free tier compare to Hetzner? Oracle’s Always Free tier gives you 4 OCPUs and 24GB RAM at zero cost compared to Hetzner’s entry level offering of 4 vCPU and 8GB RAM at $7.99 per month. Oracle wins significantly on RAM and storage while Hetzner edges ahead on bandwidth. For a free server Oracle is hard to beat, but Hetzner remains a solid choice for stable production workloads on x86 architecture.
Is Oracle Cloud’s Always Free tier really free forever? Yes. Unlike AWS or Google Cloud which offer free tiers that expire after 12 months, Oracle’s Always Free resources remain active for the lifetime of your account. As long as you stay within the resource limits of 4 OCPUs, 24GB RAM, and 200GB storage you will not be charged.
Do I need a credit card to sign up? Yes. Oracle requires a valid credit card for account verification. A small temporary hold may appear but it is removed. As long as you stay within Always Free limits no charges are applied. Setting up a budget alert immediately after signup is strongly recommended.
Why did I get an out of capacity error on the free tier? Ampere A1 instances are in high demand and the free tier frequently hits capacity limits. The most reliable fix is upgrading to a Pay As You Go account. This gives you access to more capacity while your Always Free resources remain completely free.
What can I run on a free Oracle Cloud VM? Quite a lot. Web servers, Docker containers, automation tools like n8n, local AI models via Ollama, APIs, bots, personal AI assistants, and more. The ARM architecture means you should check for ARM compatible builds but most popular tools support it in 2026.
What is the difference between Oracle Cloud free tier and Always Free? When you first sign up you get a 30 day trial with credits to explore paid services. Always Free resources are separate and remain active after the trial ends regardless of whether you upgrade or not.
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