Datacenter vs Residential Proxies: An In-Depth Comparison
Proxy fundamentals

Vilius Dumcius
Key Takeaways
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Datacenter proxies offer high speed and lower costs, making them great for bulk tasks that don't require high stealth.
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Residential proxies use real IP addresses from ISPs, which helps you bypass anti-bot systems and access geo-restricted content easily.
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Choosing between residential and datacenter proxies depends on your specific goals, such as web scraping or account management.
Comparing datacenter vs residential proxies helps you understand which tool fits your project best. Though both datacenter and residential proxies hide your actual IP address and keep your online activity private, they also do much more.
Proxies are a gateway for you to access the entire internet freely. If your geographical location limits your access to websites from other countries and regions, proxies will get you around that.
Below, we’ll break down the differences to help you decide:
| Feature | Datacenter proxies | Residential proxies |
|---|---|---|
| Source | Data centers and cloud hosts | Regular end-user devices |
| Speed | Extremely fast | Dependent on household connection speed |
| Stealth | Low | High |
| Cost | Lower | Higher |
| Best for | Speed-critical tasks like scraping | Avoiding blocks and bans |
When it comes to choosing between datacenter and residential proxies, there are several factors to consider. In this article, we’ll explain what these proxies are and how they differ.
Datacenter vs Residential Proxies - What Are They?
Proxies keep your online activity, personal information, IP address, browsing history, and other data anonymous and secure. They break digital barriers, circumvent geographical, website, and server blocks, and keep you safe at the same time.
Datacenter proxies and residential proxies work in the same way - they mask your IP address, offering security and anonymity. They are two of the essential proxy types.
What Is a Datacenter Proxy?
Private datacenter proxies are the most common type of proxy servers today. They do not have any affiliation to your internet connection or internet service provider and are entirely independent of these two.
Typically, you buy datacenter proxies in bulk from a secondary source , giving you an assortment of IP addresses you may use. When you use these proxies, your original IP address is masked and replaced by the IP address issued by your datacenter proxy service provider.
Each proxy server will have its unique IP address, providing you with a different online identity each time you connect to the internet. Datacenter proxies allow you to choose your location by giving you different IP addresses to make you appear to be in another place. This way, these proxies give you the ability to browse from any location in the world.
However, these proxies are usually sourced from cloud service providers and are generally used by multiple users at once. As datacenter proxy IP addresses are not affiliated with internet service providers (ISPs), they have a tendency to be flagged and banned more frequently.
What Is a Residential Proxy?
When an internet service provider connects your home or office to the internet, they allocate an IP address to the location. It is the actual residential IP address of the particular physical site from which you access the internet. When you change your physical location, your internet service provider gives you a new IP address.
These proxies are IP addresses given by an internet service provider (ISP). They are real IP addresses that are attached to actual devices using residential internet connections. A residential proxy allows you to connect to the internet through the IP address of another existing home or office.
It’s important to know that, unlike datacenter proxies, residential proxies allow websites and services to trace the IP address back to its actual physical location. In other words, these proxies are indistinguishable from genuine internet users.
Residential and Datacenter Proxies: Best Use Cases
Choosing the right tool for the job is critical for success. Different tasks require different levels of security, speed, and anonymity. Here is how residential and datacenter proxies perform across popular use cases.
Web Scraping
Web scraping involves extracting large amounts of data from websites. Many sites protect their data with strict security measures. Datacenter proxies are fast and cheap, which works well for scraping simple sites with low security.
Sophisticated websites, however, will quickly spot and block datacenter proxies. For these tougher targets, residential proxies are the superior choice because they appear to be real users and can collect data without triggering alarms.
Sneaker Bots and Limited Releases
Buying limited-edition sneakers requires speed and stealth. Retailers like Nike and Adidas use aggressive anti-bot systems to stop automated purchases. While datacenter proxies offer the speed needed to check out instantly, they are risky due to bans.
On the other hand, residential proxies mimic genuine buyers, which makes them highly effective for sneaker bots, as they bypass queues and blocks that would stop other proxy types. Usually, ISP proxies do the best job here, as they combine the benefits of datacenter and residential proxies.
Ad Verification
Companies spend millions on digital ads, but ad fraud is a major issue. Ad verification allows businesses to check if their ads appear on the right websites and reach the intended audience.
Residential proxies are essential because fraudsters use cloaking to show clean pages to datacenter bots while serving malicious ads to real users.
SEO Monitoring and SERP Tracking
Search engines tailor results based on location and browsing history. To get accurate data for SEO monitoring, you need to see what real users see in different regions.
Residential proxies allow you to simulate searches from any city or country, which gives you precise data on how your website ranks globally. Datacenter proxies might work for basic checks, but search engines often flag datacenter IPs for unusual activity, leading to CAPTCHAs or blocks.
Social Media Management
Managing multiple social media accounts for marketing requires meticulous care. Platforms like Instagram and Facebook will ban accounts if they detect management from a single IP address.
Residential proxies provide a trusted IP, but for long-term account health, you must use static residential (ISP) proxies to ensure your login location remains consistent and doesn’t trigger security flags.
Residential vs Datacenter Proxies: Key Differences
Choosing between a datacenter and a residential proxy comes down to what you need. Datacenter proxies are more readily available and easier to find than residential proxies.
Datacenter IPs are generally much cheaper, with some proxy service providers charging less than a dollar per IP address. The speed is a fantastic benefit of datacenter proxies, as they are not limited by ISP constraints.
Residential proxies are not as fast. Their speed is dependent on the speed of the internet connection of the actual residential IP location. Additionally, since they are affiliated with an ISP and a real internet connection, residential IPs get around geo-blocking much more easily.
Since the internet is available in almost all corners of the world, residential proxies allow you access to a greater range of residential IP locations worldwide.
If trust and legitimacy are what you need, then a residential proxy is best for you. Websites trust them because these proxy IPs link to actual residential locations or legitimate ISPs. Certain websites can detect proxy connections by checking if they connect to physical addresses or ISPs.
Datacenter proxies come as blocks in most cases, a series of IP’s whose addresses follow each other sequentially. Because these datacenter proxies are not attached to a location or a legitimate ISP, and the addresses are in sequence, they are easy to identify and block.
Residential proxies have a significantly lower block rate than datacenter proxies. Because residential proxies use real IP addresses of actual residential places, they make great sneaker proxies.
Websites for sneaker retailers like Adidas, Converse, and Nike easily detect datacenter proxies and block them, but residential proxies hardly ever get seen.
Once again, in choosing between datacenter vs residential proxies, it’s important to remember that both offer you anonymity by masking your IP address.
Though residential proxies are more secure and harder to detect, they are slower and more expensive. Datacenter proxies are faster, cheaper, and more accessible, but they’re also easier to detect and block.
Which Should You Choose?
Deciding between residential and datacenter proxies ultimately comes down to your budget and your specific technical needs. Here is a quick overview to help you pick the right solution:
-Choose datacenter proxies if you: - Need top-tier speed and can compromise on stealth for it. -Have a limited budget and need a cost-effective solution. - Are targeting websites with low security or no anti-bot systems. - Need an IP change for general browsing, gaming, or bypassing basic region locks where stealth isn’t required.
- Choose residential proxies if you:
- Need to access strict geo-restricted content or require precise city-level location targeting.
- Are planning on doing web scraping on sites with high-level security.
- Require ad verification to ensure your marketing campaigns are running smoothly.
- Are doing SEO monitoring and need accurate, localized search results.
- Need high anonymity and stealth to avoid IP bans.
Conclusion
It’s important to find a trustworthy proxy service provider. A legitimate, secure, and reliable proxy service provider will offer clean proxies that have not been blacklisted, banned, or flagged for suspicious activity.
At IPRoyal, we offer you the best of both worlds. Our static and rotating residential proxy service allows you to own real IPs in different countries worldwide. We do not splice or share proxies - all our proxies are for your private use alone.
Additionally, we offer our clients the ability to alter and replace their proxy at specific times automatically. Our datacenter proxies are powerful, fast, and safe. Our sneaker proxies are private, compatible with any sneaker bot, and reserved only for you.
Finally, our premium private proxies offer IPs from multiple subnetworks for you to choose from and support both HTTPS and SOCKS5 .
FAQ
What is the main difference between datacenter and residential proxies?
The main difference lies in the source of the IP address. Datacenter proxies come from cloud server providers and are not linked to an ISP. Residential proxies are real IP addresses provided by Internet Service Providers to homeowners. It makes residential proxies look like genuine users, while datacenter IPs look like server traffic.
Are datacenter proxies easier to detect than residential proxies?
Yes, datacenter proxies are easier to detect. Their IP addresses are registered to cloud hosting companies (ASNs) rather than home ISPs, making them instantly recognizable to anti-bot systems regardless of the specific IP range.
Which proxy type is better for web scraping?
Residential proxies are better for scraping high-security websites. However, for bulk scraping on simple sites with low security, datacenter proxies are often the superior choice due to speed and lower cost.
Why are residential proxies more expensive than datacenter proxies?
Residential proxies are harder to acquire. Providers must source IPs from real users, which is complex and costly. The price reflects the difficulty of maintaining a network of real-user devices, even though they may be less stable than server-based proxies.
Are residential proxies legal to use?
Yes, using residential proxies is legal. However, your actions must comply with laws (like GDPR/CCPA regarding personal data). Be aware that using proxies to bypass restrictions may violate a website’s Terms of Service, risking account bans.