Datacenter IP’s vs Residential IP’s

Today, many internet users from ordinary individuals to private companies are beginning to use or wish to start using proxies for web scraping, security and privacy needs when browsing cyberspace. Most people however do not  know which is the optimal proxy type to use for their own needs. In this article we will go over the differences between the two major types of proxies-- Datacenter and Residential proxies. 

Datacenter Proxy - what are they and how they operate

Datacenter proxies are a kind of IP address that are not controlled by an Internet Service Provider (such as Verizon), but are maintained by web servers like Amazon AWS. When using the datacenter IP, an internet user's IP address changes to the host server’s one before finally accessing the website or application. The user’s original IP address is protected since the datacenter effectively  functions as a barricade, and the accessed site only sees the datacenter IP. The most popular use-cases for datacenter proxies are high connection speeds when accessing websites, such as information delivered instantly after being collected, or entering websites that have poor security measures, such as Netflix. 


  • High speed: Datacenter proxies are hosted by strong servers that contain high connectivity speeds that can hit 10 gbps, and function 24/7.
  • Flexibility: Allows the user to choose between which kind of datacenter IP they want, either  private or shared IP; the former is more expensive since it is exclusive, but the latter is cheaper since there are multiple users. 
  • Low price:  Because there is such a large bulk collection of obtainable datacenter proxies provided by an array of providers, they are very cheap considering it's simple accessibility. Private data center IP’s tend to be around $2-3 dollars, while shared ones range in-between cents.
  • Unlimited bandwidth: Because the proxies are sold through a pool of IP addresses, most providers allow near unlimited bandwidth use.
  • Large availability: Datacenter IP addresses are easier to create or collect in mass since there is a much higher availability of these proxies in comparison to Residential ones. 


  • Easy exposure: Datacenter proxies are not issued an autonomous system (ASN), which makes it very easy for a website to detect  if a user is employing a datacenter IP and ban it as a security protocol. 
  • Lack of network and region variety: The pool of datacenter IP addresses that are offered by one network are usually limited, which means overtime their repeated use becomes easier to recognize by web servers, becoming blocked as a result. Furthermore, datacenter IP’s are usually centered in specific locations that are popular for hosting datacenter servers, as opposed to a large range of different countries to choose from with their residential counterpart. 
  • Zero proxy rotation:  Datacenter IP providers almost never offer proxy rotation - shifting of IP addresses automatically for every request made or after an allotment of time - for the addresses unless at a premium cost, which by then is not worth the use. 

Residential Proxy - what are they and how they operate

Residential proxies are a type of IP address utilized from a real internet user’s home electronics that are connected to their ISP or house WiFi. This allows a proxy user to have access to a homeowners real IP address when surfing the web, not getting blocked by websites since they see a real IP address as opposed to a datacenter one entering their servers. The Residential proxy also changes the proxy user’s real IP address, ISP provider, and geographical location, keeping them anonymous and secure. The most popular use-cases for residential proxies are web scraping - social media sites like Instagram, Search engine suppliers like Google, e-commerce platforms like Amazon, or retail brands like Nike - and carrying out geographical region specific duties,  from authenticating advertisements to bot monitoring. 


  • Security:  Proxy users are connecting to a real home IP address, making it nearly impossible for websites to detect that it is a residential proxy as opposed to a home internet user. Again, residential proxies also changes the proxy user’s real IP address, ISP provider, and geographical location, keeping them anonymous and secure. 
  • Large network and regional diversity: Residential proxy providers - such as Spider - offer access to millions of residential proxies, enabling a proxy user to use a new IP address everytime they make an internet request. These proxies are also highly diversified since they are sourced from all over the world; from the most popular locations like the US to unique countries like New Zealand. In addition, the network diversity is rich since the pools of residential proxies are offered by more than one network (subnet), making it very unlikely for the IP address to be banned by a website. 
  • Easy use: Because users have access to a large pool of residential proxies that automatically connect to a IP address from a given proxy server, they do not have to take extra time deciding which IP address to choose from. Also, when the residential IP does change, proxy users’ don't have to deal with proxy server changes, since they remain the same. 
  • Proxy rotations: IP addresses can be automatically rotated for every website request made, with the proxy user having the ability to decide what type of rotation configuration they want to satisfy their web scraping. This procedure is completed by the proxy provider 


  • Slower connectivity and reliability rates: Since residential proxies add a layer of connection when accessing a website, connectivity will not be as fast since it takes extra time to complete the entire process. In addition, since the IP address is being derived from a real homeowner (giving the proxy user an authentic address that is legitimized by the website they are accessing) , their internet access can be slow which in turn limits the speed of the proxy being utilized. What's more is that the residential owner can disconnect their internet at will for whatever reason, so having entry to their IP address becomes nullified if it can't be utilized properly. 
  • Non-exclusive use: Since base residential IP’s are not private (which is a premium feature that costs extra, which Spider provides) but  are rather shared with others through the accessible pool of residential proxies, the same IP’s are accessed by multiple proxy users which subsequently affect speed and quality levels . Once overused, these IP addresses can get blocked/blacklisted by a website that detects their common use. 
  • Cost: Residential IP’s are the most expensive type of proxy since the process of IP collection for proxy use is time consuming and demanding, meaning there are fewer residential proxy providers then datacenter ones, making their services more expensive consequently.  

Which should a person choose?

It all comes down to use-case. For relatively simple tasks, datacenter proxies are a good option, but for tasks that require greater attention and efforts, residential proxies are the answer. Residential proxies are also the superior product in terms of  web scraping, security and privacy since they use other real IP addresses from residents and do not show up as a proxy connection from a website security system, thereby not being denied access to the web server. Here at Spider, we not only provide all the aforementioned  benefits of residential proxies, but they are the highest quality sourced residential IP addresses in the world!

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