To set up a KMS server, you first need to have a Windows Server machine with a valid KMS host key. Here are the general steps: 1. Install the Volume Activation Services role through the Server Manager. 2. Use the Volume Activation Tools to enter your KMS host key. 3. Activate the KMS host online or by phone. 4. Configure DNS settings so that client machines can discover the KMS server automatically. 5. Ensure your client machines are set up to connect to the KMS server for activation. Detailed instructions can be found in Microsoft’s official documentation.