Datacenter Proxies vs. Residential Proxies: Comparison Guide

Today, many users log in to their accounts through proxy servers to change their IP addresses and avoid triggering red flags. But not every IP address is the same. When you are going to connect through a proxy server, you will be using either a residential IP proxy or a datacenter IP proxy. Note there are many ways to hide or mask your IP address other than using a proxy server, like by using a VPN or a separate internet connection, and with some other types of connections, you can either choose a residential IP or a datacenter IP. Here in this article, we are going to differ between “residential IP proxy” and “datacenter IP proxy.”

Before starting this blog post, you must understand the difference between the two and use the correct type if you really want to keep your accounts safe & secure. This ultimate guide will show the pros & cons of residential IPs and datacenter proxies from A to Z. If you use proxies to control multiple accounts (whether through Netnut.io or not), please continue.

Do you want to get the fastest proxies? Do you want to find the never blocked proxies for web scraping & do the residential proxies worth buying?

In this blog post, we will thoroughly explain the difference between the two types of proxy: datacenter and residential proxies. Both of these types have their Pros and Cons, and we will try to cover all aspects, both of which will definitely benefit our readers.

What Are Residential Proxies?

As its name suggests, the residential proxy is an IP address provided by an Internet Service Provider (ISP) to a home. It is a genuine IP address attached to a physical place. So basically, when you move to a new location and set up your internet, your ISP will give you an IP address. If curious, you can check what is your IP address by simply googling it.

Residential proxies are IP addresses assigned by Internet Service Providers (ISPs) to homeowners. These proxies use real, physical locations, making them appear as genuine user connections from various regions worldwide. Because they are perceived as legitimate users by websites, residential proxies are highly effective for tasks requiring a high level of anonymity, such as web scraping, bypassing geo-restrictions, and managing multiple accounts without detection. Their legitimacy helps avoid detection and blocking by websites, making them a reliable choice for businesses and marketers.

Every time you go online, your website history gets tracked by either your Internet Service Provider (ISP) or the said website you visit. Both can also estimate your place; all of this is possible because they know and can see your IP address.

This is where proxies come in useful. What is a proxy? It is a “substitute” that allows you to go online under a different IP address.

Pros of Residential Proxies

1. Detection: The residential proxies are almost undetectable as proxies. Certain sneaker sites like Adidas, Nike have already blocked most of the datacenter proxies on the internet. The advantage of the residential proxies is that even though you are using a proxy, they won’t detect it.
2. High Anonymity: The main benefit of a residential IP is high anonymity.
3. Less Chance of getting blocked: Residential proxies have slight to none chances of getting blocked if the proxies are of a good quality service provider.
4. Genuine & security: The reason for that is that all residential proxy providers rely on the P2P networks except NetNut.

NetNut’s proxies are even more difficult to detect by the websites due to its unique one-hop connectivity with ISPs. So, as mentioned before, the chances of getting banned are slim.

Cons of Residential Proxies

1. Choice: Unlike the number of datacenter providers, there aren’t too many companies that sell residential proxies.
2. Price: Residential proxies aren’t extremely affordable compared to datacenter proxies.
3. Speed: This is not one of the residential proxy’s strong suits, The reason for this is that limit the connection speed of the internet connection of the person whose IP address you are using, but that doesn’t apply for NetNut at all.

NetNut connects directly to ISPs to bring the fastest one-hop connectivity to its customers. Currently, NetNut is the only player in the market that connects directly to partner ISPs worldwide.

What Are Datacenter Proxies?

Datacenter proxies are IP addresses generated by data centers, not tied to an ISP or physical location. They are typically faster and more cost-effective than residential proxies, making them suitable for large-scale web scraping, bulk data collection, and other tasks where speed and cost efficiency are critical. However, datacenter proxies are more likely to be flagged or blocked by websites because they can be detected as non-residential IPs. They are ideal for tasks that do not require high anonymity levels or that target less restrictive sites.

A datacenter proxy is different from any residential proxy in that it is not owned by an ISP. It can function as a “wall” between you and anyone who tries to see your IP through the online world web. Instead of seeing your home IP address and all of its associated identifying information, the person trying to look at your real IP address sees only the datacenter proxy address, as well as the information associated with the company that owns the datacenter. You can think of a datacenter proxy as a way to mask your real IP address and its associated identifying information – but not as a full replacement for a residential IP.

Pros of Datacenter Proxies

1. Price: The datacenter proxies are very cheap. You can find them for as little as $1 per IP address.
2. Availability: Since these are the most common types of proxies, that means that there will be easy to find. There are hundreds of companies that sell datacenter proxies.
3. Speed: We already mentioned that these proxies are part of a server. That means that speed is something that they are excellent at. You can get a datacenter proxy with ten times faster internet speeds than your own local.
4. Geo-restricted content: In general, they are good at providing you with access to content restricted to your place.

Cons of Datacenter Proxies

1. Detection: we mentioned that datacenter proxies are good at hiding your real IP address, but this is not always the case. Certain websites and services are good at discovering datacenter proxies. Take Wikipedia, for example. From the screenshot below you can see that it was able to detect the datacenter proxy that we used.
2. More chances of getting blacklist as compared to a residential proxy.

How To Choose Between Residential Proxies and Datacenter Proxies

When deciding between residential proxies and datacenter proxies, it’s important to consider the specific needs and objectives of your project. Residential proxies are ideal when you need high levels of anonymity and legitimacy. Since these proxies come from real ISPs and are associated with actual residential addresses, they are less likely to be flagged or blocked by websites. This makes them perfect for activities like sensitive web scraping, managing multiple social media accounts, and accessing geo-restricted content, where authenticity and trustworthiness are crucial.

On the other hand, datacenter proxies are a better fit for projects that require high speed and cost efficiency. These proxies are generated by powerful servers in data centers and can handle a large volume of requests quickly, making them suitable for bulk data collection, SEO monitoring, and competitive analysis. However, because datacenter proxies do not originate from real ISPs, they can be more easily detected and blocked by websites with strict security measures. If your task involves scraping less restrictive sites or managing automated tasks at scale without a strong emphasis on stealth, datacenter proxies might be the more practical option.

Another key factor to consider is your budget and the level of support you require. Residential proxies tend to be more expensive due to their scarcity and higher reliability, while datacenter proxies are generally cheaper and more readily available. If your project has a limited budget and does not require extensive geo-diversity or stealth, datacenter proxies may offer a cost-effective solution. However, if you are working on a project where the risk of getting blocked or banned could result in significant setbacks, investing in residential proxies could provide a better return on investment.

Ultimately, the choice between residential and datacenter proxies will depend on the balance between cost, speed, and anonymity required for your specific use case. By thoroughly evaluating the needs of your project—considering factors like the sensitivity of the data, the target website’s security measures, and your budget constraints—you can make a well-informed decision that aligns with your goals.

Final Thoughts on Residential Proxies vs Datacenter Proxies

Most proxy providers, whether they are offering residential and/or datacenter proxies, are providing 3 to 7 days free trial. You can test different proxies on your target websites before you reach to any conclusion during the free trial.

However, using a datacenter proxy is always risky, most of the popular websites like Google, Facebook are already blocking datacenter proxies and many other websites are improving their detection levels day by day in the parallel of their growth, meaning that for a certain time of period datacenter proxies might work well, but sooner or later, eventually, they won’t be useful.

Also, many of the companies that sell residential IP proxies are actually selling datacenter proxies. They are spreading fake info to people and tell them they are residential IPs, hoping that people never learn the truth. Because of that, you have to do much research before buying residential IP proxies.

So, our recommendation is to follow our tips and decide which proxies will work best for you. But, regardless of what you are buying, always make sure that you check if the company is legit. The last thing you would want is to get scammed.