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Hetzner details how its Cloud network stack handles firewalls, DHCP and VXLAN

Hetzner published a technical overview explaining how its VM hosts manage cloud server networking, including public internet access, Private Networks built on VXLAN with unique network identifiers, and a stateful Cloud Firewall enforced directly on the host. It also described the use of DHCP for assigning IPv4 addresses and cloud-init for configuring IPv6, attaching volumes, and pulling metadata from an internal server at 169.254.169.254.