Twitch Streaming VPS Setup: Reduce CPU Load and Improve Quality

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Quick answer: A VPS can improve your Twitch streams by: 1) Acting as a relay server for reliability, 2) Running cloud OBS to offload encoding, 3) Adding profess

Written by Space-Node Team – Infrastructure Team – 15+ years combined experience in game server hosting, VPS infrastructure, and 24/7 streaming solutions. Learn more

Quick answer: A VPS can improve your Twitch streams by: 1) Acting as a relay server for reliability, 2) Running cloud OBS to offload encoding, 3) Adding professional features like backup streaming, 4) Enabling multistreaming to Kick/YouTube. Most streamers benefit from a €10-20/month VPS for significant quality improvements.


Why Use a VPS for Twitch Streaming?

Common Problems VPS Solves

| Problem | How VPS Helps | |---------|---------------| | CPU maxed while gaming | VPS does the encoding | | Dropped frames from unstable internet | VPS buffers and retransmits | | Want to multistream | VPS pushes to multiple platforms | | OBS crashes mid-stream | VPS provides backup | | Need 24/7 reruns | VPS runs without your PC |

Who Benefits Most

  • Gamers with older CPUs: Offload x264 encoding
  • Streamers on unstable connections: VPS smooths interruptions
  • Multi-platform streamers: One upload, many destinations
  • Professional streamers: Redundancy and features

Method 1: Relay Server (Most Popular)

Use VPS as an intermediary between your OBS and Twitch.

How It Works

Your PC (OBS) 
    │
    │ RTMP upload (6 Mbps)
    ▼
VPS (NGINX-RTMP)
    │
    │ Re-streams to Twitch
    ▼
Twitch Ingest Server

Benefits

  1. Stability: VPS has datacenter internet (no home router issues)
  2. Multistream: Push to Kick/YouTube from same stream
  3. Buffering: VPS handles brief upload drops
  4. Recording: Save archive on VPS

VPS Requirements

| Stream Quality | CPU | RAM | Bandwidth | Price | |----------------|-----|-----|-----------|-------| | 1080p30 | 2 cores | 2GB | 5TB | €5-10 | | 1080p60 | 2 cores | 2GB | 10TB | €10-15 | | + Transcoding | 4 cores | 4GB | 10TB | €15-25 |

Setup Guide

Step 1: Install NGINX-RTMP

sudo apt update
sudo apt install nginx libnginx-mod-rtmp -y

Step 2: Configure NGINX

sudo nano /etc/nginx/nginx.conf

Add at the bottom (outside http block):

rtmp {
    server {
        listen 1935;
        chunk_size 4096;
        buflen 2s;
        
        application live {
            live on;
            record off;
            
            # Only allow your IP
            allow publish YOUR_HOME_IP;
            deny publish all;
            
            # Push to Twitch
            push rtmp://live.twitch.tv/app/YOUR_TWITCH_STREAM_KEY;
        }
    }
}

Step 3: Restart NGINX

sudo nginx -t
sudo systemctl restart nginx

Step 4: Configure OBS

Settings → Stream:

  • Service: Custom
  • Server: rtmp://YOUR_VPS_IP/live
  • Stream Key: mystream (or anything)

Now your stream goes to VPS, which forwards to Twitch.


Method 2: Cloud Encoding (Offload CPU)

Run OBS on the VPS and send your gameplay to it.

How It Works

Your PC (Game + NDI/RTMP output)
    │
    │ Video capture (high quality)
    ▼
VPS (OBS running in cloud)
    │
    │ Encodes + streams
    ▼
Twitch

Benefits

  1. Zero local encoding: All CPU goes to gaming
  2. Better quality: Can use slow x264 preset
  3. Add overlays remotely: Access OBS from anywhere
  4. 24/7 capability: Cloud OBS runs forever

VPS Requirements

| Quality | CPU | RAM | GPU | Price | |---------|-----|-----|-----|-------| | 720p60 | 4 cores | 4GB | None | €15-20 | | 1080p30 | 4 cores | 4GB | None | €15-20 | | 1080p60 | 4-6 cores | 8GB | None/GPU | €25-50 |

Setup Guide

See our Cloud OBS VPS Setup Guide for full instructions.

Quick overview:

  1. Install desktop environment (XFCE)
  2. Install VNC server
  3. Install OBS Studio
  4. Send local video via NDI or RTMP
  5. OBS on VPS adds overlays and streams

Method 3: Backup/Failover Streaming

Never lose a stream due to crashes or disconnects.

How It Works

Primary: Your PC → OBS → Twitch
Backup:  VPS runs fallback content

If primary fails → VPS automatically takes over

Setup with FFmpeg Failover

On VPS, create failover script:

nano /home/user/failover.sh
#!/bin/bash

PRIMARY="rtmp://localhost/live/mystream"
BACKUP_VIDEO="/home/user/brb-loop.mp4"
TWITCH_KEY="YOUR_TWITCH_KEY"

while true; do
    # Try to relay primary stream
    timeout 10 ffprobe -v quiet "$PRIMARY"
    
    if [ $? -eq 0 ]; then
        # Primary is live, relay it
        ffmpeg -i "$PRIMARY" -c copy -f flv "rtmp://live.twitch.tv/app/$TWITCH_KEY"
    else
        # Primary is down, play backup
        echo "Primary down, playing backup..."
        ffmpeg -re -stream_loop -1 -i "$BACKUP_VIDEO" \
            -c:v libx264 -preset veryfast -b:v 4000k \
            -c:a aac -b:a 160k \
            -f flv "rtmp://live.twitch.tv/app/$TWITCH_KEY"
    fi
    
    sleep 5
done

Modify NGINX to receive primary:

application live {
    live on;
    record off;
}

Your OBS streams to VPS. If it stops, VPS plays your "Be Right Back" video.


Method 4: Dual-Stream Redundancy

Stream from two locations simultaneously for maximum reliability.

Setup

Location 1 (Your PC):

  • OBS → VPS → Twitch

Location 2 (VPS):

  • Receives your stream
  • Has fallback content

NGINX config for dual-input:

application live {
    live on;
    
    # Record to disk
    record all;
    record_path /var/recordings;
    record_suffix _%Y-%m-%d.flv;
    
    # Push to Twitch
    push rtmp://live.twitch.tv/app/TWITCH_KEY;
}

If your main stream dies, VPS has recording to reference or loop.


Adding Professional Features

1. Stream Recording

Record every stream on VPS:

application live {
    live on;
    
    record all;
    record_path /var/recordings;
    record_suffix _%Y-%m-%d_%H-%M.flv;
    record_unique on;
    
    # Convert to MP4 when done
    exec_record_done ffmpeg -i $path -c copy $dirname/$basename.mp4;
    
    push rtmp://live.twitch.tv/app/KEY;
}

Benefits:

  • Backup of all content
  • Source for YouTube highlights
  • Higher quality than Twitch VOD

2. Multi-Bitrate Transcoding

Send one stream, output multiple qualities:

application live {
    live on;
    
    # Transcode to 720p
    exec_push ffmpeg -i rtmp://localhost/live/$name 
        -c:v libx264 -preset fast -b:v 3000k -s 1280x720
        -c:a aac -b:a 128k
        -f flv rtmp://localhost/720p/$name;
    
    # Transcode to 480p  
    exec_push ffmpeg -i rtmp://localhost/live/$name
        -c:v libx264 -preset fast -b:v 1500k -s 854x480
        -c:a aac -b:a 96k
        -f flv rtmp://localhost/480p/$name;
}

Useful for custom players or serving mobile viewers.

3. Stream Delay

Add delay for esports/competitive to prevent stream sniping:

application live {
    live on;
    
    # 30-second delay buffer
    exec_push ffmpeg -i rtmp://localhost/live/$name
        -c copy
        -f fifo -fifo_format flv
        -attempt_recovery 1
        -recovery_wait_time 1
        -map 0
        "rtmp://localhost/delayed/$name";
}

application delayed {
    live on;
    push rtmp://live.twitch.tv/app/KEY;
}

4. Overlay Injection

Add overlays server-side:

ffmpeg -i rtmp://localhost/live/stream \
    -i /path/to/overlay.png \
    -filter_complex "overlay=W-w-10:10" \
    -c:v libx264 -preset veryfast \
    -c:a copy \
    -f flv rtmp://live.twitch.tv/app/KEY

Useful for adding sponsor logos or alerts without touching local OBS.


Optimizing for Twitch

Twitch Stream Requirements

| Quality | Resolution | FPS | Bitrate | |---------|------------|-----|---------| | Affiliate | 1080p max | 60 | 6000 kbps | | Partner | 1080p60 | 60 | 8000 kbps | | Recommended | 720p60 or 1080p30 | 60/30 | 4500-6000 kbps |

Twitch Ingest Servers

Use closest server for lowest latency:

| Region | Server | |--------|--------| | Auto | rtmp://live.twitch.tv/app | | Amsterdam | rtmp://live-ams.twitch.tv/app | | Frankfurt | rtmp://live-fra.twitch.tv/app | | London | rtmp://live-lhr.twitch.tv/app | | US East | rtmp://live-iad.twitch.tv/app | | US West | rtmp://live-sjc.twitch.tv/app |

For VPS in Netherlands, use Amsterdam ingest:

push rtmp://live-ams.twitch.tv/app/YOUR_KEY;

Optimal NGINX Buffer Settings

rtmp {
    server {
        listen 1935;
        chunk_size 4096;
        
        # Smooth variable upload speeds
        buflen 2s;
        
        # Increase if network is unstable
        # buflen 5s;  
        
        application live {
            live on;
            
            # Prevent timeout on slow connections
            wait_video on;
            wait_key on;
            
            push rtmp://live-ams.twitch.tv/app/KEY;
        }
    }
}

Troubleshooting

Stream Dropping Frequently

# Check VPS → Twitch connection
curl -I rtmp://live.twitch.tv

# Check NGINX error log
tail -f /var/log/nginx/error.log

# Check VPS bandwidth
iftop

Common causes:

  • VPS bandwidth insufficient (upgrade plan)
  • Twitch ingest overloaded (try different server)
  • RTMP timeout (increase buflen)

High Latency

If stream delay is too high:

# Reduce buffer
buflen 1s;

# Or use low-latency mode in Twitch dashboard

Also enable Low Latency in Twitch Dashboard → Settings → Stream.

Frame Drops on Upload

# Check your upload speed
speedtest-cli

# You need 1.5x your bitrate (9+ Mbps for 6000 kbps stream)

If upload is borderline:

  • Lower bitrate to 4500 kbps
  • Or use SRT instead of RTMP (handles packet loss better)

VPS Overloaded

# Check CPU usage
htop

# If CPU is maxed, you're transcoding too much
# Solutions:
# - Don't transcode (passthrough only)
# - Upgrade VPS
# - Use faster preset

SRT Instead of RTMP

SRT (Secure Reliable Transport) handles unstable connections better.

VPS SRT Relay Setup

# Install SRT tools
sudo apt install srt-tools -y

Create SRT to RTMP relay:

nano /home/user/srt-relay.sh
#!/bin/bash
srt-live-transmit \
    "srt://:9999?mode=listener&latency=1000" \
    file://con | \
    ffmpeg -i - -c copy -f flv rtmp://live.twitch.tv/app/YOUR_KEY

OBS Settings:

  • Service: Custom
  • Server: srt://YOUR_VPS_IP:9999
  • Stream Key: (leave empty)

SRT recovers from 5-10% packet loss gracefully.


Cost Analysis

VPS Streaming Costs

| Setup | Monthly Cost | What You Get | |-------|--------------|--------------| | Basic relay | €5-10 | Passthrough to Twitch | | Relay + recording | €10-15 | + VOD storage | | Cloud encoding | €20-40 | + OBS on VPS | | GPU encoding | €50-100 | + Hardware encoding |

vs Alternatives

| Solution | Monthly | Features | |----------|---------|----------| | DIY VPS (Space-Node) | €10-20 | Full control, unlimited | | Restream.io | €19-49 | Easy multistream | | Castr.io | €12-50 | Recording, CDN | | Streamyard | €25-49 | Browser streaming |

DIY VPS gives most control at lowest cost.


When VPS Doesn't Help

GPU Encoding (NVENC)

If you have RTX GPU, NVENC encoding has near-zero CPU impact. VPS won't improve performance.

When NVENC is enough:

  • RTX 2060 or better
  • Single-platform streaming
  • Stable home internet

When VPS still helps with NVENC:

  • Multistreaming
  • 24/7 reruns
  • Backup/failover
  • Recording remotely

Excellent Home Internet

If you have fiber with 99.9% uptime, relay benefits are minimal. VPS helps more for:

  • DSL/cable with variable speeds
  • Shared household bandwidth
  • Mobile/cellular connections

Real-World Examples

Example 1: Gaming Streamer

Problem: CPU at 100% while gaming, stream stutters

Solution: VPS relay with slight buffer

Config:

application live {
    live on;
    buflen 2s;
    push rtmp://live.twitch.tv/app/KEY;
}

Result: Local OBS uses "faster" preset, VPS handles buffering. Smooth gameplay and stream.

Example 2: IRL Streamer

Problem: Drops during mobile streams

Solution: SRT relay through VPS

Config: SRT listener → FFmpeg → Twitch RTMP

Result: Stream survives 10% packet loss without visible issues.

Example 3: Multi-Platform Creator

Problem: Wants to stream to Twitch + Kick + YouTube

Solution: VPS multistream relay

Config:

application live {
    live on;
    push rtmp://live.twitch.tv/app/TWITCH_KEY;
    push rtmp://ingest.kick.com/live/KICK_KEY;
    push rtmp://a.rtmp.youtube.com/live2/YT_KEY;
}

Result: One upload, three platforms.


Frequently Asked Questions

Will this improve my stream quality?

If your bottleneck is CPU or network stability, yes. If you have good hardware and internet, improvement is marginal.

Is this allowed by Twitch?

Yes. Relaying through your own server is completely allowed. Many partners do this.

Does this add latency?

About 0.5-2 seconds depending on buffer settings. For most streams, unnoticeable.

Can I use this for Twitch drops/watch parties?

Yes. VPS relay works for any Twitch stream type.

What if my VPS goes down?

Have OBS configured to fall back to direct Twitch streaming. Or use a second VPS as backup.


Conclusion

A VPS can significantly improve your Twitch streaming:

| Benefit | How | |---------|-----| | Better stability | Datacenter internet buffers drops | | Lower CPU usage | Cloud encoding option | | Multi-platform | One upload, many destinations | | Professional features | Recording, delay, overlays | | 24/7 reruns | VPS runs without your PC |

For €10-20/month, you get infrastructure that rivals professional broadcasters.


Ready to upgrade your Twitch setup? Space-Node VPS hosting offers low-latency servers in Amsterdam—perfect for Twitch streaming. Starting at €5/month with 1Gbps network and full root access.

Related guides:

About the Author

Space-Node Team – Infrastructure Team – Experts in game server hosting, VPS infrastructure, and 24/7 streaming solutions with 15+ years combined experience.

Since 2023
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Our team specializes in Minecraft, FiveM, Rust, and 24/7 streaming infrastructure, operating enterprise-grade AMD Ryzen 9 hardware in Netherlands datacenters. We maintain GDPR compliance and ISO 27001-aligned security standards.

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Twitch Streaming VPS Setup: Reduce CPU Load and Improve Quality