If I host my WireGuard vpn on a different server than proxmox is data still encrypted

I have a separate machine running my plex server which I have it hosting my WireGuard VPN so I can connect to it when I’m not home. Now I bought a separate computer to setup proxmox. When I turn on my WireGuard VPN to connect to my network and I connect to my proxmox servers IP address is all data still encrypted even though WireGuard is hosted on a different machine within my network? Or do I need to setup a separate WireGuard on my proxmox server?