Proxies are used for a wide range of tasks: website parsing, traffic filtering, creating alternative routes and bypassing blocks, load balancing, software and web service integration etc. However, each task has its own technical features and nuances. Therefore, specific types of proxies are suitable for each application scenario.
Some of the most common types of proxies include server (datacenter) proxies and residential (home) proxies.
In this article, we will discuss residential and server proxies and compare them in detail.
Residential proxies, also known as home proxies - are proxy servers that operate on the basis of IP addresses of regular users - the ones provided by local ISPs (home internet providers).
Server proxies, also referred to as datacenter proxies - are proxy servers that operate on the basis of IP addresses owned by data centers and hosting providers.
At first glance, the difference may not seem significant, but that changes when you delve deeper into the details.
First, we'll discuss each proxy type separately to establish a clear understanding, and then we'll compare them with each other.
Residential proxies are proxies, the IP addresses of which are recognized as those of home internet providers. These IPs are typically assigned to residential households, hence the alternate name "home" proxies.
In most developed countries, there are few IPv4 addresses left. Therefore, local internet operators often rotate the available pool of IP addresses and provide their clients with dynamic, rather than static, addresses.
Rotating IPs can be "public" when each client receives a full-fledged IP address for the duration of their active session, or "shared" when a single IP address is assigned to multiple clients simultaneously by the provider. In the latter case, reverse routing is managed through special hardware and software systems.
In any case, a static residential IP is a rarity. It usually comes as a premium service, letting a user keep a specific address for an extended period (a month or more).
Technically, residential proxies can operate for a long time without interruption. In this case, however, a proxy provider needs to establish at least a nominal agreement with the user, allowing them to run a proxy server on their end and keep it active.
Less commonly, proxy providers themselves rent IP addresses from home internet providers. In this case, they can use these IPs as static addresses.
This scenario, however, is rare and not the most efficient, as residential proxies are appealing due to their ability to rotate.
Here's how rotating residential proxies work:
Situation 1: Residential Proxies with Direct Connection
A special software (proxy server) is installed on clients' devices, which is responsible for redirecting requests. Such software can communicate with the main server to report its availability, IP address and free IP ports.
As a result, clients of the proxy provider receive a list of direct IP addresses and ports to which they can connect. Further rotation is managed by clients: they monitor the IP addresses assigned to them for bans and rotate them as they become unavailable (keeping in mind that residential proxies typically don't last long as the device owner can turn it off anytime).
Situation 2. Residential Proxies with Reverse Connection
This is a more convenient option. The client software (proxy server running on the user's device) not only reports its address and port number but also remains in constant contact with the main server.
Clients of the proxy provider get access to a proxy port. This is a special intermediate proxy that receives requests from a client and forwards them within the entire proxy network. The proxy port remains static. However, since the root proxy knows about all active residential proxy servers, it can manage their connections - balancing the load and selecting exit nodes on the basis of specific logic like a particular city or an association with an internet service provider.
Thus, a client connects to the proxy port, which in turn is part of a large proxy network. Requests are routed within this network and exit at the points determined by the super-proxy. The routing logic can be partially determined by the client and partially by the super-proxy algorithms.
Naturally, residential proxies with reverse connection are most interesting for business tasks (like web scraping, website monitoring, testing etc.) because a client can change the exit nodes for each request to avoid blocks.
The larger the proxy network is - the better, as this increases the number of IPs in specific locations, enhances targeting accuracy etc.
Here is a more detailed material about residential proxies (their specific features and application cases).
Datacenter proxies, also known as server proxies - are proxies, the IP addresses of which are identified as those belonging to companies that provide hosting services (renting computational power in data centers).
These companies may even have an official status as a Local Internet Registry (LIR).
Since data centers are crucial nodes of the internet network, they almost always have broad access channels. This typically involves direct connections to backbone internet channels or traffic exchange points - locations where multiple backbone channels converge.
Server proxies operate within physical or virtual servers. A data center distributes the IP addresses available to its clients, similar to how residential internet providers assign IP addresses. However, there is a key difference - all connections and communications happen within the data center (DC). Additionally, client users - website visitors, clients of web services, online applications etc. interact with the data center. Essentially, the datacenter primarily communicates with end users only and rarely directs traffic to external sites.
The basic working mechanism of server proxies is quite similar to that of residential proxies:
Server proxies can operate independently or as part of a large-scale proxy network, including setups with reverse connection. In this configuration, they function similarly to rotating residential proxies.
Note that our datacenter proxies have been thoroughly tested for quality, and we maintain a large pool of available addresses to ensure efficient rotation for every new request. This helped us bypass many of the common "cons" associated with datacenter proxies.
Froxy's datacenter proxies are the ideal solution for straightforward web scraping tasks. They make it possible to reduce costs due to lower traffic expenses.
Here is an in-depth information on datacenter proxies (their special features and application cases).
Now, we have approached the most important part - the comparison. We'll break down the differences between datacenter and residential proxies based on key characteristics for clarity and better understanding.
Datacenter proxies have always been and will remain the fastest and most stable. This is because they operate on high-performance data center equipment. Additionally, access channels with mandatory redundancy (this infrastructure is what clients pay for in data centers) are available here as well.
Residential proxies can also ensure good speeds, especially if the channel is not involved in other activities. This is generally sufficient for streaming video and downloading heavy content.
It's important to note that real connection will completely depend on current node load. In other words, even backbone channels are limited and they can also be overloaded.
The level of anonymity and security of proxy server connection largely depends on settings and capabilities of the software used. However, there are nuances that depend on proxy type:
When considering the expenses associated with proxies, it's important to evaluate them in the context of the specific project.
On the surface, datacenter proxies appear significantly cheaper than residential ones. They offer high connection stability and good speeds. If the pricing is based on traffic usage, each gigabyte tends to be the most affordable.
If datacenter IPs are rotated with each request or on a timed basis, they will resemble the functionality of residential proxies. Isn’t it a good way to save costs?
In case you need to parse a complex target site that can detect automated traffic, using datacenter proxies may lead to a high number of connections being blocked or resulting in CAPTCHA challenges. Every solved CAPTCHA incurs additional costs, quickly increasing the budget for the project parsing. The traffic volume grows as well as pages are loaded twice longer (once with the CAPTCHA and once without it), which also extends the parsing time.
In this case, the use of residential proxies seems more logical as the trust level to real “home” addresses is higher.
Conclusion: For simple websites and basic security systems, high-quality datacenter proxies (those already checked against spam databases) are a cost-effective choice. For more complex and large-scale projects, it makes sense to choose residential proxies.
Criteria |
Residential Proxies |
Datacenter Proxies |
Source of IP Addresses |
Local ISPs (residential/home users) |
Data centers and hosting providers |
Connection Speed |
Average (sufficient for heavy content) |
High |
Connection Stability |
Average (potential for disconnects) |
High (disconnects are unlikely) |
Trust Level by Protection Systems (Block Probability) |
High trust (low probability of being blocked) |
Low trust (high probability of being blocked) |
Traffic Cost |
Average |
Low (minimal investment) |
Targeting Accuracy |
Up to city and ISP level |
Up to large cities (usually to country level) |
Pool Size |
Up to several million |
Several thousand IPs |
Rotation Capability |
Yes |
Yes |
So, when does it make sense to choose datacenter vs residential proxies? Due to their characteristics, datacenter proxies - even with access to a large IP pool and rapid rotation - are best suited for simpler scraping tasks where there are no advanced protection mechanisms.
It's crucial to select that very proxy provider that can guarantee the quality of their IP addresses. Despite having a large pool, datacenter proxies can struggle with more complex websites "out of the box."
When advanced protection mechanisms are unavailable, though, rotating datacenter proxies are an ideal way to save on costs since their traffic is typically the most affordable.
If you are dealing with a complex site equipped with advanced security systems, residential proxies are the better choice. They are more expensive and potentially less stable than datacenter proxies, but they offer a larger IP pool and more accurate targeting.
What’s more, they also enjoy a high degree of trust from anti-fraud algorithms because the IP addresses belong to real private users. Additionally, they make it possible to emulate user behavior in your scraping scripts, especially when using libraries like Chromepd and headless browsers.
Here is our article on how to avoid blocks when parsing.
Whatever the type of proxy server is, much will depend on the address quality. We recently launched a service for renting datacenter proxies where rotation and targeting can be configured almost like in residential proxies. Froxy offers a large pool of high-quality datacenter IPs. Any unused traffic can be carried over to the next month. As a result, you get a great opportunity to save on simple scraping tasks.
For comprehensive testing of our services, we offer a special trial package.