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Palworld Dedicated vs Hosted Server

Dedicated or hosted Palworld server? Prices, performance and ease of use compared.

When you start looking into how to set up a Palworld server, you quickly run into two terms: dedicated server and hosted server. These two phrases sometimes mean different things depending on who's using them, which can be confusing. Here's what you really need to understand before you choose.

What is a Palworld dedicated server?

In gaming lingo, a "dedicated server" means the machine's resources are entirely allocated to your server, with no sharing among other customers. It's the opposite of shared hosting, where several servers split the same physical machine.

But in player conversations, "dedicated server" often simply means a server that runs around the clock (as opposed to co-op mode hosted directly by a player). In that sense, a server with a game host is also a dedicated server.

To keep it simple

In this guide, we talk about a home server (you run the server on your own PC) vs a hosted server (you rent a server from a cloud provider). That's the real distinction that matters to a player.

Head-to-head: home vs game host

Detailed breakdown of the differences

Price: is a host really more expensive?

A PC running around the clock draws between 100 and 400W depending on the model. At €0.25/kWh (2026 regulated rate), that's between €18 and €72/month in electricity alone, not counting hardware wear. A host at €10/month is often cheaper than running an old PC nonstop.

Performance: who comes out on top?

A game host with dedicated resources and a modern CPU (Ryzen 5 5600+ or equivalent) will almost always beat an average gamer's PC used as a server. Hosts also have datacenter connections (1-10 Gb/s) that are in a completely different league from a residential line.

Availability: the host's real advantage

If you play with friends in different time zones, or if you want your friends to be able to play even when you're not around, a home server just doesn't cut it. A hosted server is online at all times, no matter what's going on at your end.

Security: an often overlooked point

Running a server from home exposes your public IP to every player who connects to it. On a public server, that can attract DDoS attacks. Game hosts generally include DDoS protection in their plans.

Who is each solution for?

ProfileRecommended solutionWhy
Trying Palworld in multiplayer just onceHome serverFree, no commitment
Playing on LAN with friends on the same networkHome serverNo external IP needed
Playing regularly with 2-4 people in the eveningHost (8 GB)Server always available, ~€8-12/month
Community of 5-15 playersHost (12-16 GB)Stable performance, easier management
Public server with 20-32 playersDedicated host (16-32 GB)Guaranteed resources, anti-DDoS
You have a powerful server at home (already paid off)Home server if connected 24/7It can make economic sense

These recommendations assume a standard residential internet connection. A host remains more reliable in almost every use case.

The special case of the VPS

Between the home server and the specialized game host, there's a third option: renting a VPS (Virtual Private Server) from a cloud provider and manually installing the Palworld server on it.

The advantages of a VPS

More flexible than a game host (you control the entire OS), often cheaper for large configurations, and adaptable to other uses (website, Discord bot, etc.).

The drawbacks of a VPS

You need to know how to use Linux on the command line, install dependencies manually, configure the firewall, and handle Palworld server updates yourself. Not suited to players without server experience.

Who is it suited for?

If you've already managed Linux servers, a VPS can be economical for a large configuration. Otherwise, a specialized game host will save you a lot of time and energy for a similar cost.

Warning

Watch out for generic VPS offers marketed as 'game servers'. Without a dedicated panel and Palworld-specific optimization, you risk spending more time debugging than playing.

Our final recommendation

For 95% of players who want a Palworld server, a specialized game host is the right answer. The cost is predictable, setup takes less than 15 minutes, and you don't have to worry about maintenance.

A home server only makes sense if you just want to test things out, if you already have a dedicated server at home, or if you play exclusively on LAN.

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Frequently asked questions

Is a hosted server really a dedicated server?
It depends on the plan. Some hosts offer shared plans (several servers on the same physical machine) and dedicated plans (exclusive resources). Specialized gaming plans are generally shared at the hardware level but with resources guaranteed per container. For everyday use up to 20 players, the difference is imperceptible.
Can you migrate from a home server to a host?
Yes. Your Palworld saves are located in the Pal/Saved/SaveGames/ folder. You can copy this folder from your PC and upload it to the hosted server via the panel's file manager. Migration usually takes less than an hour.
Can my home server handle 10 players?
If your PC is recent (i7/Ryzen 7 or better), you have 16 GB of RAM available, and a fiber connection with a good upload (100+ Mb/s), then yes. But as soon as several players explore different areas or fights break out, lag shows up fast on a residential connection.
Can a host shut down my server without warning?
Reputable hosts have SLAs (uptime commitments) and won't cut servers without notice unless there's a serious problem on their end. Read the terms of service before committing and check that the host offers at least 99.5% guaranteed uptime.
Palworld Dedicated vs Hosted Server: Which to Pick (2026) | HostMyGame