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A NAS can do more than serve files when it runs virtual machines—but there are two different ways to build one. You can run VMs inside NAS software that includes virtualization, or install a dedicated hypervisor and give it access to NAS storage. The first keeps storage and virtualization under one operating system; the second makes the hypervisor the owner of the hardware. That choice affects disk access, resource allocation, networking, and the risk of a host failure.

First, decide what “turning a NAS into a hypervisor” means

In a NAS-with-VMs design, the NAS operating system manages the physical disks and provides file services while also hosting guests. TrueNAS includes VM functionality, with VM disks that can be backed by ZFS zvols. In a hypervisor-with-NAS-storage design, a separate platform such as Proxmox VE runs the virtual machines and uses storage that may be local, shared, or supplied by a NAS. The NAS might be another machine on the network, or storage made available to the hypervisor.

Question NAS operating system hosts VMs Separate hypervisor uses NAS storage
Who owns the physical hardware? The NAS operating system The hypervisor; NAS storage is a resource it uses
How are VM disks provided? They can use NAS-managed storage such as TrueNAS zvols They can use local, shared, or NAS storage supported by the hypervisor
What must be kept available? CPU, memory, and storage for NAS services as well as guests CPU and memory for the hypervisor and guests; also account for the separate NAS if it provides storage
What is the central trade-off? One system combines storage management and guest workloads Virtualization is separate from storage management, but depends on the hypervisor’s storage configuration and availability

These arrangements are not interchangeable. Before changing a working NAS, identify which operating system will manage the disks and where each VM’s virtual disk will live.

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What resources do VMs take away from file services?

A VM reserves or consumes host CPU, RAM, storage, and network capacity. The NAS still needs resources for its own operating system, file services, and storage workload. Leave headroom for those services rather than assigning nearly all available memory or processor capacity to guests.

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Proxmox VE’s current hardware guidance calls for a 64-bit Intel or AMD CPU with Intel VT or AMD-V, at least 2 GB of memory for the host and services, plus memory for guests. It also says ZFS or Ceph needs additional memory—approximately 1 GB per TB of used storage—and recommends fast storage. These are Proxmox platform guidelines, not universal sizing rules for every NAS or hypervisor. Its 1 GB RAM, hard drive, and one-NIC minimum is for evaluation and testing, not for a working NAS host. Proxmox VE hardware requirements

For TrueNAS, the hardware guide recommends at least 8 GB of RAM for basic operations with up to eight drives. That guidance does not include the additional memory needed for VMs and other workloads. TrueNAS also notes that ECC memory can provide an additional integrity defense, but CPU and motherboard support varies; systems can operate without ECC. TrueNAS hardware guide

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On TrueNAS, VM memory and zvol resources are unavailable to the host or other VMs while in use. Plan guest allocations alongside the NAS’s own requirements, and verify resource behavior for your installed release. TrueNAS VM documentation

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Choose where VM storage lives and how guests reach it

VM disks on NAS-managed storage

TrueNAS VMs can use zvol-backed virtual disks. If a VM needs to access local NAS storage, TrueNAS says you must create a network bridge so the guest can communicate with the NAS. A bridge is a networking requirement for that access; it does not make the VM’s virtual disk and the NAS’s file services the same thing.

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Check the VM’s intended network connection and the host’s bridge configuration in the documentation for your installed TrueNAS release. The current TrueNAS 27 VM page is early-release documentation; the stable TrueNAS 25.04 VM documentation is a more appropriate reference for release-specific instructions. TrueNAS 25.04 VM documentation

Storage supplied to a separate hypervisor

Proxmox VE can use local, shared, and NAS storage. Its guidance recommends fast, redundant storage. If using ZFS or Ceph, Proxmox says hardware RAID controllers are incompatible with those storage systems; verify the controller and disk arrangement before building the pool. Proxmox VE hardware requirements

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Faster networking is useful only when the guest workload and the rest of the network can take advantage of it. Proxmox supports 10 Gbit and higher, but a multi-gigabit adapter alone will not improve performance if the NAS, switch, clients, or workload remain the bottleneck.

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When does disk or PCIe passthrough matter?

Passthrough gives a guest more direct access to physical hardware, but compatibility depends on the whole system. PCIe passthrough requires CPU and motherboard support for I/O virtualization—Intel VT-d or AMD-Vi—as well as suitable firmware and device behavior. Check the exact processor, motherboard, firmware settings, and target device before buying parts or planning around passthrough. Proxmox’s requirements page covers the platform prerequisites. Proxmox VE hardware requirements

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If virtualizing TrueNAS for a proof of concept, its hardware guide advises passing through physical disks or the entire storage controller. That does not make virtualizing TrueNAS with virtual disks a safe production design: the guide explicitly warns against using that configuration for production or critical data because it is unsupported and may result in data corruption. An HBA can be relevant when a particular build needs controller passthrough, but it is not a universal NAS requirement; check compatibility with the motherboard, hypervisor, storage OS, and drive connection before selecting one. TrueNAS hardware guide

Understand portability and host-failure trade-offs

A consolidated host can run file services and other workloads on one machine, but it also concentrates their dependencies. If the host is unavailable, guests on it are unavailable; if the NAS operating system or storage layer is misconfigured, the consequences can reach both file services and VM disks. Back up important data and guest configurations, and make sure the recovery plan does not depend solely on the same host.

CPU settings can also affect portability. TrueNAS explains that CPU passthrough may improve performance but ties a VM to the exact host CPU. Its default custom CPU mode is intended to provide more predictable portability. Choose based on whether the VM must move between different hosts, not on performance assumptions unsupported by your own workload. TrueNAS VM documentation

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Use this pre-build checklist

  • Choose the architecture: decide whether NAS software will host VMs or a separate hypervisor will consume NAS storage.
  • Check platform support: confirm CPU virtualization support; for PCIe passthrough, verify VT-d or AMD-Vi support across the CPU and motherboard.
  • Budget resources: reserve memory, CPU, storage capacity, and network capacity for the NAS and its guests.
  • Confirm storage behavior: determine whether VM disks will be zvols, local hypervisor storage, or NAS-provided storage; verify controller compatibility, especially with ZFS or Ceph.
  • Plan guest networking: configure a bridge when a TrueNAS VM must access local NAS storage, and ensure the network path meets the workload’s needs.
  • Protect data and recovery: maintain backups and avoid treating virtualized TrueNAS with virtual disks as a supported production or critical-data configuration.
  • Verify release-specific steps: follow documentation for the software version actually installed, particularly for early-release features.

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