If you’re looking to save on automation costs and have full control over your data, self-hosting n8n is the way to go. In this guide, I’ll explain how to set up a Virtual Private Server (VPS) with the ultimate AI agent stack: n8n + Qdrant + PostgreSQL.

Why This Stack?

n8n: The best low-code workflow orchestrator.
Qdrant: Efficient vector database for your agents’ memory (RAG).
PostgreSQL: Robust backend for n8n executions (much better than the default SQLite).

Prerequisites

A VPS (Recommended: 2 vCPU, 4GB RAM).
Domain pointing to your server’s IP.
Basic terminal knowledge.

Step 1: Install Docker and Docker Compose

Connect to your server via SSH and run:

sudo apt update && sudo apt upgrade -y
sudo apt install docker.io docker-compose -y

Step 2: Configure Docker Compose

Create a docker-compose.yml file in your home directory:

version: '3.8'

services:
  n8n:
    image: n8nio/n8n
    ports:
      - "5678:5678"
    environment:
      - N8N_HOST=${DOMAIN_NAME}
      - N8N_PORT=5678
      - N8N_PROTOCOL=https
      - NODE_ENV=production
      - WEBHOOK_URL=https://${DOMAIN_NAME}/
      - DB_TYPE=postgresdb
      - DB_POSTGRESDB_HOST=postgres
      - DB_POSTGRESDB_PORT=5432
      - DB_POSTGRESDB_DATABASE=n8n
      - DB_POSTGRESDB_USER=${POSTGRES_USER}
      - DB_POSTGRESDB_PASSWORD=${POSTGRES_PASSWORD}
    volumes:
      - n8n_data:/home/node/.n8n
    depends_on:
      - postgres
      - qdrant

  postgres:
    image: postgres:16
    environment:
      - POSTGRES_USER=${POSTGRES_USER}
      - POSTGRES_PASSWORD=${POSTGRES_PASSWORD}
      - POSTGRES_DB=n8n
    volumes:
      - postgres_data:/var/lib/postgresql/data

  qdrant:
   image: qdrant/qdrant
   ports:
     - "6333:6333"
   volumes:
     - qdrant_data:/qdrant/storage

volumes:
  n8n_data:
  postgres_data:
  qdrant_data:

Step 3: Environment Variables

Create a .env file with your credentials:

DOMAIN_NAME=your-domain.com
POSTGRES_USER=n8n
POSTGRES_PASSWORD=your_secure_password

Step 4: Deployment

Run the stack:

sudo docker-compose up -d

You should now have access to n8n on your domain (if you configured a Reverse Proxy like Traefik or Nginx, which is highly recommended for SSL).

The Hard Part: Maintenance and Security

Setting up the server is just the beginning. Then you have to worry about:

Configuring SSL certificates (Let’s Encrypt).
Setting up automatic backups of the database.
Keeping the OS and Docker updated.
Monitoring for uptime.

There Is a Better Way

If you want all the benefits of self-hosting (privacy, no execution limits) but without the headaches of being a SysAdmin, at AIBuildr we’ve automated it all.

We offer managed private servers with this exact stack (n8n + Qdrant + Postgres) ready in 1 click.

View n8n Hosting Plans >