Datacenter or Residential, Which Proxy Service Is for You?

Posted by Marta on May 6, 2022 Viewed 1523 times

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Every internet connection is enabled using the internet protocol (IP) address. This address can be found on every internet-enabled device, and it helps the internet identify each device so that results are sent correctly.

However, being easily identified by the servers and websites can also spell doom for the user as other nefarious elements may also be looking to identify the user.

This may not pose a significant threat for individuals, but it holds dire consequences for businesses.

Hence, companies need to find ways of using IPs that cannot be tied to them or used to identify them online. And this is where the use of proxy services becomes very crucial.

 Proxies are broadly divided into two groups; datacenter and residential proxies, and in this article, we will consider their separate benefits and how they differ.

What Are Datacenter Proxies?

Datacenter proxies can be defined as proxies that use virtually generated IPs to mediate the connections between users and the web.

They are owned by third-party developers and come equipped with IPs that cannot be tied to actual locations but are generated and hosted in the clouds.

This means they are not tied to the internet service providers (ISPs) and cannot be blocked by the ISPs. However, because their addresses cannot be traced to actual users, they might risk getting blocked by many websites.

However, they are incredibly fast and have the highest speed among the different types of proxies. They are also very affordable, being cheaper than residential and mobile proxies.

Below are some of the benefits of datacenter proxies:


Datacenter proxies are built and owned by third-party companies, making them very affordable to push their adoption and widespread utility.

However, this does not take anything away from the quality of these kinds of proxies.


This proxy also offers fast internet connections allowing up to 10 Gbps, a feat that is unattainable with other kinds of proxies.

Users can quickly use it to get tasks done promptly without wasting too much time. This helps to increase productivity and save time and other resources.


Another advantage and benefit of datacenter proxies are how they are suitable for a wide range of tasks.

Tasks that mostly require getting past restrictions and switching IPs can be easily achieved using datacenter proxies.

Datacenter proxies can also be used for operations that require you to work with one IP address at a time. For instance, managing social media accounts requires using the same IP to prevent getting blocked.

And datacenter proxies are perfect since they maintain the same IP until you manually switch to another IP.

What Are Residential Proxies?

Residential proxies can be defined as proxies that use IPs belonging to real devices to route traffic from users to the internet.

Their IPs are tied to real users and locations, unlike datacenter proxies, and this is because they are built and owned by ISPs which also assign IPs to the devices on the internet.

Residential proxies are more genuine and trustworthy than other proxies and may stand less risk of getting blocked on the internet.

However, they may cost more than other proxies and are not generally as fast with establishing connections or transferring traffic from users to the web.

Below are some of the most important benefits of residential proxies:

Higher Anonymity

Since anonymity is an important necessity for being on the internet, residential proxies may be the best choice.

They make users more anonymous by offering real IPs that cannot be linked to the user.

Real IP

Residential proxies are well known for offering the best IPs that closely resemble regular internet users.

This makes it difficult for websites to read and understand them as proxies and hence treat the requests as coming from a normal internet user rather than a bot.

This makes it less likely to get blocked on the internet.

Better Security

The better your security, the less likely you will fall victim to data breaches online. And residential proxies are widely used because they offer better security.

You can stay behind them and perform your regular activities online without giving away any of your sensitive information.

Main Differences between Datacenter and Residential Proxies

Residential and datacenter proxies differ, as seen in their benefits above. However, their main difference lies in their type of IP, cost, and speed of getting things done.

Residential proxies offer real IPs tied to a physical location which makes it difficult to block online. This makes them more reliable for performing different tasks.

On the other hand, datacenter proxies are faster and get things done with incredible speed. They are also more affordable and cost very little compared to residential proxies.

Summarily, businesses that perform tasks that require the use of IPs that are real and that need to be changed constantly should use residential proxies.

However, brands that mostly need speed are better off using datacenter proxies. Datacenter proxies are also more suitable for companies that do not have too much to speed on acquiring these tools.


The internet is filled with wonderful opportunities, and proxies help open the doors for businesses that use them. Oxylabs offers both of the above-mentioned proxy services if you are curious to know more about them.

Proxy services, whether Datacenter or residential, also help to protect and secure enterprises while on the internet. And the guide above helps to explain the two major types of proxies to help brands decide which to use. 

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