Datacenter vs. Residential IP Proxies: A Brief Guide

What are proxies?

Proxies are intermediary servers that act as a bridge between your device and the internet. When you use a proxy, your internet traffic is routed through the proxy server, which masks your real IP address and provides you with a new one.

This allows you to access websites and online services anonymously or bypass certain restrictions. Proxies can also enhance security and privacy by encrypting your data and protecting it from potential threats.  There are two types of proxies datacenter and residential.

Datacenter vs. Residential IP Proxies

We completely understand that selecting the right type of proxies can be a daunting task for both individuals and businesses. It’s important to weigh the options between datacenter and residential proxies carefully. If you’re uncertain about which option is the most suitable for you, don’t worry!

This article covers everything you need to know. You’ll discover detailed information about these two types of proxies, including how they function, the advantages and disadvantages of each, their practical uses, a side-by-side comparison, and much more. To kickstart this review, let’s begin with a brief introduction to proxies.

What are Datacenter Proxies?

Datacenter proxies are proxies that are located in large datacenters and are used across the globe. Unlike residential proxies, they are not associated with your internet service provider or your personal internet connection. Datacenter IPs are owned and managed by big companies like Azure Cloud, AWS (Amazon Web Services), and Digital Ocean.

How Do Datacenter Proxies Work?

The functioning of datacenters is quite straightforward. When you want to visit a website, your request goes through the datacenter proxy server. The server then changes your IP address to a different one before sending the request. When the response comes back, it is sent to you through the newly assigned IP address. This process ensures that websites cannot determine the actual source of the request.

Exploring Free vs. Paid Datacenter Proxies

When it comes to datacenter proxies, you’ll find both free and paid options in the market. The difference between residential and datacenter proxies is quite clear. While residential proxies are available for free, datacenter proxies require a subscription fee.

Free datacenter proxy providers cannot ensure reliability and are more likely to be blacklisted or banned. Moreover, they have little control over how their services are used. That’s why it’s generally not recommended to rely on free datacenter proxies.

What are Residencial Proxies?

Residential Proxies, unlike data center proxies, utilize genuine IP addresses provided by Internet Service Providers (ISPs) to homeowners. Since these IP addresses are linked to real devices, using residential proxies enables the replication of natural human behavior online.

Ethics play a crucial role in the acquisition of Residential Proxies. It is essential that these proxies are obtained in an ethical manner, where homeowners give their consent and receive incentives for participating in the proxy network. Unfortunately, this isn’t always the case with some businesses. Homeowners may unknowingly agree to misleading or confusing terms of service, unaware that their devices are being used in a proxy network.

Engaging with unethically-sourced Residential Proxies carries various risks, including disruptions to business operations, harm to reputation, and potential legal issues. As a strong advocates for ethical business practices, Companies are committed to acquiring proxies in an ethical manner, allowing customers to avoid such risks.

Exploring Free vs. Paid Residential Proxies

In the market, you can find both free and paid residential proxies. Free proxies, also called public proxies, don’t require any payment or subscription fees. On the other hand, paid proxies, known as private proxies, require a subscription purchase.

While free proxies may seem appealing, they are not recommended because they lack user verification. This means you can’t be sure about their reliability or cleanliness. 

How Do Residential Proxies Work?

Residential proxies function similarly to datacenter servers by masking your actual IP address. They achieve this by redirecting your internet traffic and requests through an intermediary server with a different IP address. 

This ensures that the website or resource you’re accessing cannot trace your activity back to your real IP address. It’s worth noting that there are two types of residential proxies: static and rotating residential proxies.

Static residential proxies maintain a consistent connection to the same IP address unless you choose to disconnect or switch to another server.

Also Read: What Business People Can Do to Make Their Personal Smartphones ‘Work-Ready’

Residential VS Datacenter Proxies

Residential Proxies


Residential Proxy IPs are sourced from genuine ISPs, giving them an authentic and legitimate appearance. In contrast, Datacenter Proxies, as mentioned earlier, are generated in large quantities from data centers and cloud service providers, making them susceptible to detection and blacklisting if acquired from unreliable sources. Furthermore, Residential Proxies have the capability to maintain a consistent IP if required.

Reduced blacklisting risk 

Residential proxies pose a lower risk of being blacklisted, resulting in a smoother scraping process. Their origin from genuine ISPs makes it more challenging for websites to detect and block them, offering increased reliability during web scraping activities.

Higher cost

Acquiring and maintaining Residential Proxies tends to be more expensive compared to other types of proxies. This higher cost is associated with the need to source and maintain genuine IP addresses from ISPs, which involves additional expenses for providers.

Datacenter Proxies

Virtual nature

Datacenter Proxies are virtual in nature, and websites can identify when you are connected to one. However, if obtained from a trusted provider, these proxies effectively conceal your real IP address and offer anonymity.

High speed

Datacenter Proxies are renowned for their fast and efficient performance, making them an excellent choice for projects that require quick completion. 


If you’re seeking a cost-effective solution, especially when purchasing in large quantities, Datacenter Proxies are the ideal choice.

Which One Should You Use?

Choosing between Residential and Datacenter Proxies depends on your specific scraping needs. Residential Proxies are ideal for collecting identity-sensitive public data and handling large data volumes without triggering security alarms. 

They offer broader geo-location coverage. However, if precise location scraping is required, check if the provider offers proxies in that region. Datacenter Proxies are suitable for those with technical expertise who want to shield their IP address effectively. Private Datacenter Proxies can help maintain anonymity and cover your online footprint securely.


In Conclusion, Residential Proxies offer stronger security by making it difficult for websites to detect them, while Datacenter Proxies can still provide sufficient security, faster speeds, and cost-effectiveness when obtained from reliable suppliers. It totally depends on your choice that which one would be perfect for you.


Is the location of a proxy server important?

Absolutely! The location of a proxy server plays a crucial role. Certain online content is restricted to specific geographical regions and can only be accessed through proxies located in those areas. 

What are the different categories of proxies?

Proxies can be classified based on various factors, such as the type of protocol they support (such as HTTP(S) and SOCKS5), the level of access they provide (private or shared), and several other criteria. 

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