Scalable Architecture with Next.js

Running Next.js outside of Vercel, on your own VPS, is entirely possible — but a few architectural decisions need to be made correctly from the start.

The `output: 'standalone'` setting keeps your Docker image small, containing only the dependencies actually used. This significantly cuts deploy times and image size.

Using Nginx as a reverse proxy separates SSL termination, static file caching, and request validation from the application server. Don't forget `proxy_buffering off` for streaming responses.

If you're running multiple containers, environment variables like `NEXT_SERVER_ACTIONS_ENCRYPTION_KEY` need to match across all instances — otherwise Server Actions break between them.

Bottom line: a properly configured self-hosted Next.js setup holds up just fine against managed platforms.