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Datacenter Proxies vs. Residential Proxies

Lukas Motiejunas

Lukas Motiejunas

2021-07-014 min read

Although Residential and Dedicated Proxy IPs serve the same core functionality – hiding your IP address – they have quite a few differences. In today’s article, we’ll dive deep into each of these proxy types to help you choose which one is better for your business.   

Listen to this article or check our Spotify for more similar content. 

What are Datacenter Proxies?

Datacenter Proxies are proxies that are not affiliated with an Internet Service Provider (ISP). They come from a secondary corporation and provide you with completely private IP authentication and anonymity.

However, Datacenter Proxies usually come from data centers and cloud hosting services and are used by many at the same time. Since they are not listed as ISP providers, these IPs can already be flagged by some targets, and certain precautionary measures might be taken. But keep in mind that this is not the case with Oxylabs’ Datacenter Proxies. All Oxylabs’ Datacenter Proxies are private proxies and ensure little to no IP blacklisting.

How Oxylabs Datacenter Proxies work

How Oxylabs Datacenter Proxies work

To learn more about Datacenter Proxies, see our Product Owner Nedas explain them in detail: 

What are Residential Proxies?

On the other hand, Residential Proxies use real IP addresses supplied by Internet Service Providers to homeowners. Since these IP addresses are attached to real, physical devices, using them makes it easy to replicate organic human behavior. 

One of the most important aspects of Residential Proxies is ethicality. It’s essential that Residential Proxies are acquired in an ethical manner whereby homeowners give consent and are rewarded for participating in the proxy network. Unfortunately, this isn’t always the case with other businesses: oftentimes, homeowners consent to misleading or confusing terms of service and end up being unaware their device is used in a proxy network. 

Using unethically-sourced Residential Proxies comes with various risks, including disrupted business operations, damaged reputation, and even potential legal battles. As a strong advocate of ethical business practices, Oxylabs aims to procure proxies in an ethical manner, allowing customers to avoid said risks.  

We have a blog post explaining what are residential proxies – check it out for a more extensive overview.

How Residential Proxies work

How Residential Proxies work

If you want to read more on the topic, check out our Oxylabs article, where we explain sourcing risks in detail. And, if you’re curious to learn more about Residential Proxies in general, see this video:

Residential vs. Datacenter Proxies

As you may have already picked up, the main difference between Datacenter and Residential Proxies lies in the source of the IP. Let’s have a closer look at the rest of the differences to fully understand how these proxies operate.  

Residential Proxies:

  • Legitimate – because Residential Proxy IPs are provided by a real ISP, it makes them look real and legitimate. Whereas Datacenter Proxies, as mentioned earlier, are created in bulk and come from data centers and cloud server providers, so they can be easily detected and blacklisted if buying from an untrusted provider. Additionally, Residential Proxies can maintain the same IP if needed.

  • Lower risk of getting blacklisted due to the same reasons listed above, Residential proxies are harder to blacklist, ensuring a smooth scraping process. 

  • More expensive – Residential Proxies are higher to acquire and maintain, hence, they cost more.

Datacenter Proxies:

  • Non-physical Datacenter Proxies are artificial, so websites can tell whether you’re connected to one. Nonetheless, these proxies still hide your true IP address and provide anonymity if purchased from a reputable provider. And, if you use a private Datacenter Proxy, getting banned or blacklisted shouldn’t come as an issue. One of the most popular use cases for these proxies is market research. 

  • Fast-paced Datacenter Proxies are known for their speed and high performance, making them a great option for when you need to complete a project in a short period of time. To ensure top-tier performance, it’s essential that you purchase them from a reputable proxy provider and get the technical know-how to use them. We offer detailed documentation and professional advice from our account managers. 

  • Cost-friendly When you’re buying in bulk or looking for a budget-friendly solution, Datacenter Proxies are the way to go. Compared to Residential Proxies, they’re much cheaper while still delivering security and fast speed if, of course, purchased from the right provider. 

Which proxies should you choose?

Now that you know the differences between Residential and Datacenter Proxies, it’s time to narrow it down to which one’s better for your scraping needs. 

When comparing Residential Proxies against Datacenter ones, it all comes down to whether you need high security, or your top priority is a high speed, and you simply need to shield your IP address. 

Residential Proxies don’t leave a footprint and won’t trigger any security alarms, so they’re great for collecting identity-sensitive public data or large amounts of data in general. Many businesses use Residential Proxies for review monitoring or ad verification.

In most cases, compared to Datacenter Proxies, Residential ones cover more geo-locations. However, if you’re looking to scrape public data in a precise location, you should find out whether a provider offers proxies that reside in that region. 

On the other hand, Datacenter Proxies work very well if you have know-how about the proxy technology itself, and choose private Datacenter Proxies – this way, you’ll be able to cover your footprint properly.

Oxylabs offer private Datacenter Proxies, step-by-step tutorials, and help from account managers to help you complete scraping projects smoothly. Businesses choose these proxies from all over the globe, from Brazil and US to Australia, for use cases like email protection, market research, phishing attacks prevention, and more. 

Finally, you may also want to consider an ISP proxy which combines features of datacenter and residential proxies. To find out more, read our article on ISP vs. residential proxies.


Both Residential and Datacenter Proxies shield your IP address; nevertheless, Residential Proxies are more secure, as the websites you visit have a harder time detecting them. But that doesn’t mean that Datacenter Proxies are not worth looking into – from the right supplier, they’ll provide enough security, work faster and make a cost-friendly solution. Whichever way you decide to go to, note that you can buy these proxies in bulk.

Want to find out more about our Residential Proxies or backconnect proxies? Or maybe read up on other proxy types such as Static IPs or IPv6 proxies? Our blog has many detailed posts on all things proxies. From web scraping tools to using a Python script to scrape public data from websites, we got you covered!

People also ask

What are the other types of proxies?

Categorization of proxies can be based on protocol (HTTP(S) and SOCKS5), access (private and shared), and many other aspects.

Are proxy locations important?

Yes, the area where a proxy server is located matters. Some online content is geo-restricted, meaning that it might be displayed only to, for example, USA proxies and not to any other region-based server.

How are datacenter IP blocks different?

Datacenter IPs come from the same subnet, getting one address blocked will often mean that many others get blocked as well.

About the author

Lukas Motiejunas

Lukas Motiejunas

Lead Account Manager

Lukas Motiejunas is a Lead Account Manager at Oxylabs, and he places a strong personal interest in the market research field. Mainly, in the merge of business sector and digital tools utilization to distinguish the most effective practices to carry out automated market research operations. So if you have any questions relating to market research, he’s your guy to answer them. Lukas believes that he has a hidden talent to be a great chef, although rumor has it, he uses the smoke alarm as a timer.

All information on Oxylabs Blog is provided on an "as is" basis and for informational purposes only. We make no representation and disclaim all liability with respect to your use of any information contained on Oxylabs Blog or any third-party websites that may be linked therein. Before engaging in scraping activities of any kind you should consult your legal advisors and carefully read the particular website's terms of service or receive a scraping license.

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  • What are Datacenter Proxies?

  • What are Residential Proxies?

  • Residential vs. Datacenter Proxies

  • Which proxies should you choose?

  • Conclusion

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