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Install Docker on Ubuntu (Hetzner Server Setup)

2 min read
Docker Ubuntu Hetzner DevOps

Today I decided to document the Docker installation steps I repeat every time I spin up a new Hetzner server. I deploy projects the old school way: a bare Ubuntu VPS, Docker, and docker compose. No Kubernetes, no managed container services. It keeps costs low and the setup predictable.

The problem is I end up Googling “install docker ubuntu” every single time. Not anymore.

The Full Installation Script

This uses Docker’s official APT repository (not the docker.io package from Ubuntu’s default repos, which is often outdated).

#!/bin/bash
set -e

echo "==> Updating packages and installing dependencies..."
sudo apt update
sudo apt install -y ca-certificates curl

echo "==> Adding Docker GPG key..."
sudo install -m 0755 -d /etc/apt/keyrings
sudo curl -fsSL https://download.docker.com/linux/ubuntu/gpg -o /etc/apt/keyrings/docker.asc
sudo chmod a+r /etc/apt/keyrings/docker.asc

echo "==> Adding Docker APT repository..."
sudo tee /etc/apt/sources.list.d/docker.sources <<EOF
Types: deb
URIs: https://download.docker.com/linux/ubuntu
Suites: $(. /etc/os-release && echo "${UBUNTU_CODENAME:-$VERSION_CODENAME}")
Components: stable
Architectures: $(dpkg --print-architecture)
Signed-By: /etc/apt/keyrings/docker.asc
EOF

echo "==> Installing Docker Engine..."
sudo apt update
sudo apt install -y docker-ce docker-ce-cli containerd.io docker-buildx-plugin docker-compose-plugin

echo "==> Enabling and starting Docker..."
sudo systemctl enable docker
sudo systemctl start docker

echo "==> Adding current user to docker group..."
sudo usermod -aG docker $USER

echo "==> Verifying installation..."
docker --version

echo ""
echo "Docker installed successfully!"
echo "Log out and back in (or run 'newgrp docker') to use Docker without sudo."

What Gets Installed

PackagePurpose
docker-ceDocker Engine (Community Edition)
docker-ce-cliCLI tools for managing containers
containerd.ioContainer runtime
docker-buildx-pluginExtended build capabilities with BuildKit
docker-compose-plugindocker compose (v2, replaces standalone docker-compose)

How to Use

Option A: Save and run locally

nano install-docker.sh
# paste the script, save with Ctrl+X
chmod +x install-docker.sh
./install-docker.sh

Option B: Run from a remote URL (if you host the script in a repo)

curl -fsSL https://your-repo.com/install-docker.sh | bash

Post-Install: Apply Group Change

After the script completes, the docker group membership won’t take effect until you start a new session. Apply it immediately:

newgrp docker

Then verify everything works:

docker run hello-world
docker compose version

What I Learned

  • Always use Docker’s official APT repository. The docker.io package in Ubuntu’s default repos lags behind significantly
  • The docker-compose-plugin gives you docker compose (with a space) as a native subcommand. No need to install standalone docker-compose separately anymore
  • usermod -aG docker $USER saves you from typing sudo before every Docker command, but requires a re-login to take effect
  • newgrp docker is the shortcut to avoid a full logout/login cycle
  • Keeping this as a single script means a fresh Hetzner server goes from bare Ubuntu to Docker-ready in under 60 seconds

Deploying to Hetzner or similar VPS providers? I’d love to hear about your setup. Reach out on LinkedIn.

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