Hand-on ideas on tutorial on setting up a cloud-based server
Let me give an idea, though it will shoot down your proposal, I guess. 

Face to face time with students is precious. Use it only for those things that are best done that way. Three or four hundred years ago lecture was very efficient since even books were unavailable and very expensive. A hundred years ago books became reasonable for a student to purchase so lecture changed a bit and the book and its exercises took on a larger role. 

Today, as you suggest, we can do live demonstrations of things and have interactive sessions. But the time with students is still precious. If you want to demonstrate something or have students do something in a lab where they follow your direction, you should make sure that the topic is something that is really important and advances your main teaching goals. Setting up servers isn't likely to be in that category unless the course itself is about server management. 

The problem with work-along demos is that the students, if there are more than about ten will get out of sync. Some of them will be confused. Some of them will, when typing or otherwise interacting with the machine, miss an essential instruction from you and get lost. They will get blocked if they see something unexpected, and if it is new to them, the unexpected is expected. They will come up with questions and wait, fairly passively, until their questions are answered. 

If you are doing something truly essential, then all of these difficulties are worth it in the long run. But for the inessential and even for some essential things use handouts or web pages. Use official documentation that you point to, perhaps supplemented. Give them a way to ask their questions in a way that doesn't intrude on face time. I found a mailing list dedicated to each course as a way to do this. Especially when other students are encouraged to answer student questions. 

Use the "big impact" methodologies for the "big impact" ideas. Face time is the biggest of all. It is often even a waste to use it for lecture - a broadcast mechanism, rather than a personal one that might be used instead.