residential proxies compared to data center proxies

Why Are Residential Proxies More Expensive Compared to Data Center Proxies?

Proxies help add an extra layer of security to your online activities, whether it’s simple web browsing or something more complex like web scraping. Proxy service providers offer an extensive range of proxy types, but the most common ones tend to be residential and data center proxies.

Although both have similar functions, residential proxies tend to be costlier than data center proxies. Why is that? Let’s find out.

Residential vs. Data Center Proxies: What They Are

Several factors contribute to the difference in pricing between data center and residential proxies. However, before we discuss them, let’s take a quick look at what each proxy type is and how they’re different from each other.

• Residential Proxies

These are proxies your internet service provider (ISP) provides, typically to homeowners. As the name suggests, residential proxies are attached to an actual physical address, so IP addresses generated by this proxy can be traced to an existing location.

One downside to residential proxies is that a proxy service provider will need expressed consent when using these addresses for their proxies. Another is that they tend to be more expensive than data center ones.

• Data Center Proxies

Data center proxies, on the other hand, are proxies that were generated in a virtual server or “data centers.” Unlike residential proxies, this proxy type isn’t associated with a legitimate physical address and is primarily provided by third-party companies.

One of the primary disadvantages of data center proxies is that they’re quickly blacklisted and banned by websites because they’re not provided by ISPs, which makes the traffic through these proxies look less organic.

Why Are Residential Proxies More Expensive?

Again, one of the primary differences between data center and residential proxies is the price, with the latter costing more than the former. So, why are residential proxies more expensive?

Here are some of the most common reasons:

1. They belong to real users, not servers

Perhaps one of the most significant reasons behind the higher price tag of residential proxies is the fact that they belong to real users, specifically the physical addresses tied to these proxies.

Therefore, proxy server providers need to go through more obstacles just to obtain one address for a residential proxy, such as gaining the owner’s consent and asking them to sign contracts.

This makes them more challenging and costly to obtain, unlike data center proxies that companies can just generate in a server without needing a physical location.

However, this makes residential proxies less likely to get banned or blacklisted as well, since websites will assume that the traffic generated comes from actual users instead of bots. This makes them excellent for activities like automated data scraping or accessing geo-blocked content.

2. They offer a higher level of versatility and reliability

Another reason residential proxies are more expensive is that they offer a higher level of versatility and reliability than data center proxies. So, like with any premium service, you also have to pay a premium to enjoy them.

These proxies are considered more reliable because they’re less prone to being banned or blacklisted, allowing you to enjoy seamless online activities without suffering from downtimes or delays.

This is all thanks to the fact that they’re connected to real users and addresses, making your browsing and online activities look more legitimate and organic. Websites tend to ban bot-like activities, which is how many activities done through data center proxies tend to look. Learn more about this product at Oxylabs’ official website.

Likewise, their reliability makes them ideal for a wide range of uses – from web scraping to online market research, making these proxies incredibly versatile compared to other proxy types.

So, while residential proxies can be expensive, their versatility more than makes up for it by giving you excellent value for your money.

3. They offer better privacy online

Another reason for their high price is that residential proxies offer better privacy to users while they’re online.

Since they’re using real IP addresses provided by legitimate ISPs, you don’t have to worry about being flagged when you’re conducting online activities since you’ll look just like any other user on the internet.

This allows you to enjoy better privacy and anonymity while online, which is perfect if you’re dealing with sensitive data. With security being a genuine concern online these days, being able to keep your online activities from prying eyes is essential.


Both data center and residential proxies have their share of advantages and disadvantages, especially in terms of pricing. However, while residential proxies tend to cost more than data center ones, they are still worth the added expense.

With their higher level of reliability, versatility, and security, you can efficiently conduct your online activities without worrying about being banned or blacklisted from the websites you want to access.

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