How to Install Windows Server 2016 in a Virtual Machine

This guide shows how to install Windows Server 2016 VM step by step, with every setting in the order you will use it. Installing Windows Server 2016 in a virtual machine is the starting point of the entire Windows Server lab series on this site — domain controllers, DNS, DHCP, Hyper-V and everything else assume this base machine exists. Here is the full walkthrough.

install Windows Server 2016 VM in a home lab

WINDOWS SERVERINSTALL WINDOWS SERVER 201…ENTERPRISE LABtimer 45 MIN LAB
NH
Nurul Huda AUTHORInfrastructure & Cloud Architect · Verified 2026

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● VALID ON THE CONFIG BELOW

dns LAB TOPOLOGY & PREREQUISITES

# example values used while writing and testing this guide

LAB VM

HypervisorESXi / Workstation
vCPU2
RAM4-8 GB
Disk60 GB thin

WINDOWS BUILD

EditionServer 2019 Std
InterfaceDesktop Experience
Adminlocal Administrator
IPstatic or DHCP

VALIDATION

RolesServer Manager
Firewalllab rules only
Snapshotbefore changes

01constructionInstall Windows Server 2016: Step 1: Create the VM

In your hypervisor (the steps match both Hyper-V and VMware), create a VM for Windows: 2 vCPUs, 2-4 GB RAM, 60 GB disk, and attach the Windows Server 2016 ISO to the virtual DVD drive. The evaluation ISO from Microsoft installs without a key for 180 days. If you skipped the prep, see Before You Begin.

02downloadStep 2: Boot and Choose an Edition

Power on and boot from the ISO. Setup asks which edition to install: In short, to install Windows Server 2016 reliably, follow the order above and verify each step.

  • Standard (Desktop Experience) — the full GUI; choose this for labs and learning
  • Standard (Core) — command-line only; smaller and more secure, but hostile to beginners
  • Datacenter differs in licensing/features, not in the install flow

03usbStep 3: Install

Choose custom install, select the virtual disk, and let setup copy files. After two or three reboots, set the local Administrator password — write it down; there is no other account yet. Press Ctrl+Alt+Del in the VM console to sign in.

04terminalStep 4: First Configuration

  1. Rename the machine (Settings → System → About → Rename) — dc01, web01, etc.
  2. Set a static IP with the DNS pointing at itself if it will become a domain controller
  3. Install VMware Tools / VMware Tools equivalent or Hyper-V integration services for decent graphics and time sync
  4. Run Windows Update twice, then take a snapshot of the clean machine — you will clone or restore from this for every future lab

From here the series continues: AD DS and DNS, DHCP, or the Windows Server OS overview for the bigger picture. For the newest version, see How to Install Windows Server 2019. In short, to install Windows Server 2016 reliably, follow the order above and verify each step.

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How to Install Windows Server 2019

Finish this lab, then continue down the track. Each guide builds on the one before it.

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