Ultimate Proxy Battle: Residential Vs. Data Center

Ultimate Proxy Battle: Proxies play an essential role in businesses, especially when it comes to data collection. Are you looking forward to purchasing proxies for your business and are wondering whether to acquire a data center or residential proxies?

Ultimate Proxy Battle: Residential Vs. Data Center
Ultimate Proxy Battle: Residential Vs. Data Center

Ultimate Proxy Battle: Residential Vs. Data Center

What’s the difference between these two types of proxies? The best place to learn about this topic is the Oxylabs.io blog, but here the main differences will be presented.

Difference Between Data Center and Residential Proxies: What Are Proxies?

A proxy server or simply a proxy is a gateway that exists between your device and the internet. The server acts as an intermediary between the end-user (you) and the sites you are browsing.

Anytime you are accessing the internet via a proxy server, traffic will go through the proxy server before reaching the intended target website. The response will flow through the proxy server on its way to your device. The server carries out this operation in such a way that your original IP address or other sensitive data is not exposed. Some proxy types can provide better privacy than others, therefore whenever data protection is a concern picking the right one is important.

Any computer browsing the web bears an Internet Protocol (IP) address. A proxy server also has its IP address too. Any time you’re browsing using a proxy server, it will receive your request, change your IP address, then send the application on your behalf. The response will also flow through the server before it is sent to you.

A proxy will mask your IP address and ensure that you are protected every time you go online. By concealing your original IP address, the targeted site will not be able to access your true location or other sensitive data.

Residential Vs. Data Center Proxies: Difference Between Data Center and Residential Proxies

Residential proxies originate from real IP addresses that have been assigned by an authentic Internet Service Provider (ISP). They are attached to an actual location and produce seemingly organic traffic by routing it through a real machine.

Data center proxies, on the other hand, are not in any way related to an ISP – third parties create these servers. These proxies are hosted on a server which holds many virtual machines at once.

Data center proxies

These are the most commonly used proxy servers out there. As pointed out earlier, data center proxies are independent of both your ISP as well as your internet connection.

When you purchase these proxies in bulk, you receive a variety of IP addresses. Every server bears its IP address so that every time you access the internet, it will provide you with a new IP address and hide your original IP.


  • Suitable for data collection – these proxies are ideal for high-speed web scraping.
  • Cheap – in comparison to residential proxies, data center proxies are less expensive.
  • Fast – data center proxies are faster than residential ones as servers generally have enviable internet connection speeds.
  • Secure – data center proxies are not as legitimate as residential ones. However, this doesn’t make them unsafe, especially if taken from a trusted provider.


  • Virtual – data center proxies are not associated with any ISP. This means that they are
    not listed and use virtual machines to generate IP addresses.
  • Prone to blacklisting – the fact that these proxies are illegitimate makes them likely to
    be blacklisted. However, this can be avoided by looking out for a trustworthy provider.

Residential proxies

To understand residential proxies better, you only have to understand residential IPs – they are the founding stones of these servers! If you have an active internet connection in your home, then you have a residential IP. This IP address bears your location as well as the ISP.

For example, a residential proxy provider can sell an IP address in Germany to a business in Argentina. Any time you are online and using the proxy, your traffic will bear the real IP
address, with the precise location and IP address.


  • Real – residential proxies are real IPs provided by a real ISP and routed through a physical machine.
  • Can’t be quickly blacklisted – since residential proxies show traffic as if it was coming
    from a regular user, they are not easily flagged, banned, or blacklisted.


  • More expensive – residential proxies are more costly as compared to data center
    proxies. Prices are higher due to the need for a separate physical machine for each IP

Data Center or Residential Proxies?

Now that you know the difference between the data center and residential proxies, the choice is yours – they both offer high levels of privacy. We recommend choosing data center proxies whenever price per IP address and internet speed is a concern.

Residential proxies are often better whenever region (location) or identity sensitive internet activities are performed. However, it is essential to purchase your proxies from a trusted provider that offers a vast pool of proxies and dedicated support.

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