AI-Powered Development: Part 1 - Setting Up Your VPS for Vibe Coding with Claude

Building a complete SaaS platform using AI-assisted development. Follow my journey from beginner to full-stack developer with Claude Code and vibe coding techniques.

AI-Powered Development: Part 1 - Setting Up Your VPS for Vibe Coding with Claude

The Beginning: Why I Chose Vibe Coding Over Traditional Development

When I decided to embark on building a comprehensive SaaS platform with web and mobile applications, I discovered vibe coding – the revolutionary approach of using AI assistants like Claude to accelerate development. Instead of grinding through documentation and boilerplate code, I wanted to vibe with AI and build faster than ever before.

This meant I needed a reliable development environment that wouldn’t break the bank. As someone embracing AI-powered development workflows, I wanted complete control over my infrastructure while keeping costs minimal.

After researching various hosting options, I settled on RackNerd for several compelling reasons that make it perfect for AI-assisted development.

Finding the Perfect VPS for AI Development: Why RackNerd Won

The Vibe Coding Infrastructure Search

I needed a VPS that could handle modern AI-assisted development workflows:

  • Django backend with GraphQL API generated by AI
  • Next.js frontend built through vibe coding sessions
  • PostgreSQL database for production workloads
  • Docker containers for consistent AI-generated environments
  • CI/CD pipelines automated through AI prompts
  • Development and staging environments for rapid iteration

Most major cloud providers would cost $50-100+ monthly for these specs. That’s when I discovered RackNerd’s incredible deals – perfect for indie developers embracing AI coding.

What I Got for My Money

Here are the exact specs I purchased from RackNerd:

  • CPU: 3 cores (perfect for concurrent operations)
  • RAM: 3.5GB (sufficient for development workloads)
  • Storage: 60GB SSD (fast and adequate)
  • Bandwidth: 4.88TB monthly (massive headroom)
  • Location: Chicago, IL (great for North American users)
  • IP: Dedicated IPv4 address
  • Price: Under $30/year (yes, PER YEAR!)

The value proposition was incredible. What would cost me $60+ monthly on AWS or DigitalOcean, I got for less than $3 monthly with RackNerd.

Initial Server Setup: Ubuntu 22.04 Foundation

The Operating System Choice

RackNerd offered multiple OS options, but I chose Ubuntu 22.04 LTS for its:

  • Long-term support until 2027
  • Excellent Docker compatibility
  • Strong community support
  • Stability for production workloads

First Connection

The moment of truth came when I first SSH’d into my new server:

 
bash
ssh root@YOUR_SERVER_IP

That feeling of having your own server respond with a fresh Ubuntu prompt is quite something. RackNerd had delivered exactly what they promised – a clean, fast VPS ready for configuration.

Security First: Hardening the Server

Before installing anything, I knew security had to be the priority. Here’s the approach I took, with two options for readers:

Option 1: Manual Security Hardening (Traditional Approach)

Step 1: Update the System

 
bash
# Update package lists and upgrade system
apt update && apt upgrade -y

# Install essential security packages
apt install -y curl wget git unzip nano vim htop tree ufw fail2ban

Step 2: Create Non-Root User

 
bash
# Create new user for development
adduser your_username

# Add user to sudo group
usermod -aG sudo your_username

# Test sudo access
su - your_username
sudo whoami  # Should return "root"
exit

Step 3: Configure SSH Security

 
bash
# Backup original SSH config
cp /etc/ssh/sshd_config /etc/ssh/sshd_config.backup

# Edit SSH configuration
nano /etc/ssh/sshd_config

Add these security settings:

 
bash
# Change default port
Port 2222

# Disable root login with password
PermitRootLogin prohibit-password

# Enable key-based authentication
PubkeyAuthentication yes
PasswordAuthentication no

# Limit login attempts
MaxAuthTries 3
AllowUsers root your_username

Step 4: Set Up SSH Keys (On Your Local Machine)

 
bash
# Generate SSH key pair
ssh-keygen -t ed25519 -C "your-email@example.com"

# Copy public key to server
ssh-copy-id -p 22 your_username@YOUR_SERVER_IP

Step 5: Configure Firewall

 
bash
# Reset and configure UFW
ufw --force reset
ufw default deny incoming
ufw default allow outgoing

# Allow essential ports
ufw allow 2222/tcp  # SSH
ufw allow 80/tcp    # HTTP  
ufw allow 443/tcp   # HTTPS
ufw allow 3000/tcp  # Development server

# Enable firewall
ufw enable

Step 6: Set Up Fail2Ban

 
bash
# Configure fail2ban
cp /etc/fail2ban/jail.conf /etc/fail2ban/jail.local

# Edit configuration for SSH protection
nano /etc/fail2ban/jail.local

Add SSH protection:

 
ini
[sshd]
enabled = true
port = 2222
filter = sshd
logpath = /var/log/auth.log
maxretry = 3
bantime = 3600
 
bash
# Start and enable fail2ban
systemctl start fail2ban
systemctl enable fail2ban

Step 7: Apply SSH Changes

 
bash
# Test SSH configuration
sshd -t

# Restart SSH service
systemctl restart sshd

Option 2: AI-Assisted Security Setup with Vibe Coding (Recommended)

Honestly, after going through this process manually, I discovered the power of vibe coding for server administration:

Use Claude for Guided Security Setup

 
bash
# Update system and install Node.js for AI development
apt update && apt upgrade -y
curl -fsSL https://deb.nodesource.com/setup_20.x | bash -
apt-get install -y nodejs

# Connect to Claude via SSH and start a vibe coding session

Vibe Coding Prompt for Claude:

 
I need to secure my fresh Ubuntu 22.04 VPS for AI-assisted development. Help me set up:

1. Non-root user with sudo access for vibe coding sessions
2. SSH security (custom port, key-only auth, disable root password)
3. UFW firewall optimized for modern development workflows
4. Fail2ban protection against brute force attacks
5. Automatic security updates for hands-off maintenance
6. System optimization for AI development workloads

Walk me through each step with commands and explain the security benefits. I want to understand while implementing.

This vibe coding approach lets Claude guide you through security hardening while teaching you each step. It’s like having a senior DevOps engineer pair programming with you!

Why Vibe Coding Beats Traditional Server Setup

After manually configuring security on multiple servers, I realized that vibe coding with Claude offers:

  1. Interactive learning – Understand each security measure as you implement it
  2. Real-time troubleshooting – Immediate help when something goes wrong
  3. Best practices by default – AI knowledge includes latest security standards
  4. Personalized configuration – Tailored to your specific use case
  5. No context switching – Stay in flow state instead of googling solutions

The traditional manual approach took me about 2 hours and several SSH lockouts (thankfully RackNerd provides console access through their control panel!). With vibe coding, the same security setup takes about 30 minutes and includes deep understanding of each step.

SSH Security Configuration

Regardless of which approach you choose, here are the critical security settings I implemented:

  1. Changed default SSH port from 22 to 2222
  2. Disabled root password authentication
  3. Set up SSH key-only access
  4. Configured fail2ban for intrusion prevention
  5. Implemented UFW firewall with minimal open ports

User Management

Created a dedicated user for development work while maintaining secure root access for system administration.

Firewall Configuration

 
bash
# Only essential ports open
ufw allow 2222/tcp  # SSH
ufw allow 80/tcp    # HTTP  
ufw allow 443/tcp   # HTTPS
ufw allow 3000/tcp  # Development server

Security Verification

After completing the security setup, verify everything is working:

 
bash
# Test SSH key access from your local machine
ssh -p 2222 your_username@YOUR_SERVER_IP

# Check firewall status
sudo ufw status verbose

# Verify fail2ban is running
sudo fail2ban-client status

# Check that password authentication is disabled
sudo sshd -T | grep passwordauthentication

The RackNerd server handled all these configurations smoothly, with excellent network performance throughout the setup process.

Installing the Development Stack

Docker and Container Infrastructure

With security in place, I installed the core development tools:

 
bash
# Remove old Docker versions if any
apt remove docker docker-engine docker.io containerd runc

# Add Docker's official GPG key
curl -fsSL https://download.docker.com/linux/ubuntu/gpg | gpg --dearmor -o /usr/share/keyrings/docker-archive-keyring.gpg

# Add Docker repository
echo "deb [arch=$(dpkg --print-architecture) signed-by=/usr/share/keyrings/docker-archive-keyring.gpg] https://download.docker.com/linux/ubuntu $(lsb_release -cs) stable" | tee /etc/apt/sources.list.d/docker.list > /dev/null

# Install Docker
apt update
apt install -y docker-ce docker-ce-cli containerd.io docker-compose-plugin

# Add user to docker group
usermod -aG docker your_username

# Start and enable Docker
systemctl start docker
systemctl enable docker

Install Node.js 20:

 
bash
curl -fsSL https://deb.nodesource.com/setup_20.x | bash -
apt-get install -y nodejs

# Verify installation
node --version
npm --version

Install PostgreSQL:

 
bash
apt install -y postgresql postgresql-contrib

# Start and enable PostgreSQL
systemctl start postgresql
systemctl enable postgresql

# Create database and user
sudo -u postgres psql
CREATE DATABASE your_app_db;
CREATE USER your_app_user WITH PASSWORD 'secure_password';
GRANT ALL PRIVILEGES ON DATABASE your_app_db TO your_app_user;
\q

Install Nginx:

 
bash
apt install -y nginx

# Start and enable Nginx
systemctl start nginx
systemctl enable nginx

Resource Optimization

The 3.5GB RAM from RackNerd required smart resource management:

 
bash
# Optimized swap configuration
vm.swappiness=10
vm.vfs_cache_pressure=50

I configured Docker with memory limits and optimized PostgreSQL settings for the available resources.

The Game Changer: Vibe Coding with Claude

What is Vibe Coding?

This is where my development journey took an revolutionary turn. Instead of traditional coding approaches, I embraced vibe coding – the practice of collaborating with AI assistants like Claude to build applications through conversational programming.

Vibe coding represents the future of development:

  • Conversational programming instead of googling syntax
  • AI pair programming that never gets tired
  • Instant architecture decisions based on best practices
  • Real-time code generation and optimization
  • Natural language to code transformation

Setting Up the AI Development Environment

The beauty of having my own RackNerd server was the freedom to experiment with cutting-edge AI development approaches. I set up:

  1. Direct SSH access for real-time AI collaboration
  2. Shared development environment between local machine and server
  3. AI-guided architecture decisions for modern tech stacks
  4. Automated code generation workflows through Claude
  5. Vibe coding sessions for rapid prototyping

Why Vibe Coding Changes Everything

Traditional development often involves:

  • Hours researching best practices and documentation
  • Setting up boilerplate code manually
  • Debugging configuration issues alone
  • Learning new frameworks from scratch through tutorials
  • Context switching between development and research

With vibe coding on my RackNerd server, I could:

  • Get instant architecture recommendations through conversation
  • Generate production-ready code snippets in seconds
  • Troubleshoot issues with an AI pair programmer
  • Learn while building through interactive explanations
  • Maintain flow state without breaking for documentation

Performance Results: RackNerd Delivers

Server Performance Metrics

After fully configuring the development environment, here’s how the RackNerd VPS performed:

  • Memory usage: ~1.5GB used, 2GB available for applications
  • CPU load: <10% during normal development
  • Disk I/O: Excellent SSD performance for database operations
  • Network: Sub-50ms response times to major CDNs

Cost Analysis

Comparing my RackNerd setup vs. major cloud providers:

Provider Monthly Cost Specs Notes
RackNerd $2.50 3.5GB RAM, 3 CPU, 60GB SSD Incredible value
AWS EC2 $45+ Similar specs Plus bandwidth costs
DigitalOcean $35+ Similar specs Limited bandwidth
Linode $40+ Similar specs Additional fees

The savings using RackNerd are substantial, especially for indie developers and bootstrapped projects.

Lessons Learned: Week One Insights

What Worked Well

  1. RackNerd’s reliability: Zero downtime during setup
  2. AI-assisted development: Dramatically faster than traditional approaches
  3. Security-first approach: No regrets prioritizing this early
  4. Resource optimization: 3.5GB RAM is sufficient with proper tuning

Challenges Overcome

  • SSH configuration complexity: Multiple iterations to get security right
  • Docker memory limits: Required careful tuning for available resources
  • AI prompt engineering: Learning to communicate effectively with Claude
  • Architecture decisions: Balancing current needs with future scalability

Unexpected Benefits

The RackNerd server’s performance exceeded expectations. The Chicago location provides excellent connectivity, and the hardware handles development workloads beautifully.

What’s Next: Building the Platform

In Part 2 of this series, I’ll dive deep into:

  • Prompt engineering strategies for AI-assisted development
  • Architecture decisions for a modern SaaS platform
  • GraphQL vs REST considerations
  • Multi-platform development (web + mobile) planning

Sneak Peek: The Technology Stack

Without revealing specifics, here’s what we’re building toward:

  • Backend: Django with GraphQL API
  • Frontend: Next.js with modern React patterns
  • Mobile: Expo/React Native for cross-platform apps
  • Database: PostgreSQL with advanced features
  • Infrastructure: Docker containers with CI/CD pipelines

Why You Should Consider RackNerd

If you’re planning a similar journey, I highly recommend RackNerd for these reasons:

Cost Effectiveness

At under $30/year, you can afford to experiment without financial pressure. This freedom is invaluable for learning and development.

Performance

The hardware specs are genuine – you get exactly what’s advertised with consistent performance.

Network Quality

Excellent connectivity and bandwidth allowances mean your applications will be responsive.

Support

When I had questions during setup, their support team was knowledgeable and helpful.

Start your own development journey with RackNerd here – the same specs I’m using for this entire project.

Conclusion: Foundation Set

Week one accomplished everything I hoped:

  • ✅ Secure, performant VPS from RackNerd
  • ✅ Hardened Ubuntu 22.04 environment
  • ✅ Complete development stack installed
  • ✅ AI-assisted development workflow established
  • ✅ Foundation ready for application development

The RackNerd VPS continues to impress with its stability and performance. For less than the cost of a coffee per month, I have a production-capable server running my entire development environment.

Coming Up Next

In Part 2: “Prompt Engineering for AI-Assisted Development”, I’ll share:

  • How to structure prompts for maximum AI effectiveness
  • Real examples of architecture discussions with Claude
  • Techniques for maintaining context across long development sessions
  • Common pitfalls and how to avoid them

The journey from script kiddie to full-stack developer is challenging, but with the right tools – like RackNerd’s affordable VPS hosting and AI assistance – it’s more accessible than ever.


This post is part of an ongoing series documenting my journey building a complete SaaS platform. Follow along for real insights, honest challenges, and practical tips for modern development workflows.

Ready to start your own development journey? Get your RackNerd VPS here and follow along with the series.

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