If you want full control, security, and custom integrations, go with n8n Self-Hosted.
If you want zero maintenance, faster setup, and scalability, choose n8n Cloud.

What Is n8n and Why This Choice Matters

n8n is one of the most powerful open-source workflow automation tools. Think of it as your self-hostable alternative to Zapier or Make.

But here’s the catch: n8n offers two very different paths

• n8n Self-Hosted: You host it yourself, on your own server or infrastructure.
• n8n Cloud: n8n hosts everything for you, with managed security, scaling, and updates.

This decision shapes how your automation scales, how secure your data remains, and how flexible your workflows can become, especially as AI and LLM integrations become the core of enterprise automation.

n8n Self-Hosted: Full Control, Maximum Customization

Choose n8n Self-Hosted if you need data privacy, deep customization, and local control over your automation architecture.

Key Benefits:

• Data Control & Compliance: Perfect for enterprises or startups working with sensitive data (healthcare, finance, HR, etc.). No third-party cloud storing your credentials.
• Unlimited Workflows: You’re not restricted by pricing tiers or API limits.
• Custom Integrations: Add your own code nodes, private APIs, and even integrate LLMs like ChatGPT or Gemini locally.

Downsides:

• Requires DevOps management, setup, updates, scaling, and monitoring.
• Server costs and maintenance are your responsibility.

Best For:

Teams that need security, autonomy, and advanced AI integration flexibility.

Read more: n8n vs Zapier vs Make — Which Automation Platform Should You Choose?

n8n Cloud: Zero Maintenance, Instant Scalability

Go with n8n Cloud if you want simplicity, managed infrastructure, and fast time-to-value.

Key Benefits:

• No Setup Hassle: Just sign up, log in, and start automating in minutes.
• Automatic Updates: You always run the latest version no manual patches or downtime.
• Scalable Infrastructure: Designed to handle growing workloads without breaking your setup.

Downsides:

• Limited customization you can’t tweak everything at the system level.
• Recurring subscription costs can increase with scale.
• Data hosted externally, which may not fit compliance needs for regulated industries.

Best For:

Startups, SMBs, and teams that want fast automation with minimal overhead.

AI Integration in n8n: The 2025 Advantage

Whether you choose self-hosted or cloud, n8n has become a powerful AI automation hub.

It integrates with OpenAI (ChatGPT), Gemini, Claude, and Perplexity API endpoints, allowing you to build workflows that reason, summarize, and act autonomously.

Here’s where the difference matters:

• In Self-Hosted: You can connect private LLM endpoints (like an internal GPT or fine-tuned model).
• In Cloud: You can quickly connect to public APIs without managing tokens or security layers.

Example Use Case:

Automate content review pipelines, use ChatGPT for summarization, Gemini for data validation, and Perplexity for context retrieval, all through n8n workflows that run 24/7.

Security & Compliance: The Deciding Factor

If compliance (GDPR, HIPAA, SOC 2) is your priority
→ choose Self-Hosted.
If speed and convenience matter more → choose Cloud.

• Self-Hosted: Data stays behind your firewall; you control the storage and access logs.
• Cloud: n8n manages encryption and updates, but your data lives on their servers.

For enterprise-grade AI workflows, especially those handling customer or patient data, Self-Hosted ensures compliance without external risk.

Pricing & Long-Term Costs

n8n Self-Hosted: Low recurring cost but higher setup and maintenance.
n8n Cloud: Pay-as-you-scale model, no DevOps cost but ongoing monthly fees.

If your workflows run continuously or process high data volumes, self-hosting can be more cost-efficient long-term.

But if you prioritize time over infrastructure, cloud wins.

Which one is better for you?

Final Verdict: Choose Based on Control vs Convenience

If you’re building AI-driven enterprise automation, integrating LLMs like ChatGPT, Gemini, and Perplexity, then the choice comes down to your operational philosophy:

n8n Self-Hosted → for builders who want control, customization, and compliance.
n8n Cloud → for innovators who want speed, simplicity, and reliability.

Both paths can supercharge your automation.
But only one will align with your data philosophy and growth strategy.