Datacenter Proxies: Fast, Scalable & Ideal For Automation
What Are Datacenter (Server) Proxies?
As the name suggests (similar to mobile and residential proxies mentioned earlier), server proxies are linked to specific types of devices.
Datacenter proxies - also called server proxies - are intermediary servers housed in data centers that route your internet traffic and hide your real IP address. They deliver high speeds and offer a budget-friendly option, making them ideal for activities such as web scraping, SEO tracking, and market research. However, compared to residential proxies, they are generally easier for websites to detect.
It’s important not to confuse server proxies with ISP proxies. ISP proxies use IP addresses assigned by local internet service providers or by companies and legal entities. The main differences between the two lie in their capacity and bandwidth.
Most data centers are clusters of high-performance servers. They typically have wide access channels, direct connections to backbone networks, and/or links to major traffic exchange points (nodes where multiple backbone channels converge). A single data center may operate several parallel connections, each with speeds ranging from 1 to 100 gigabits. Impressive, right?
Data centers maintain a limited pool of IP addresses, which are allocated to hosting clients or reserved for internal use. Websites, online services, online games, and other web applications run on these IPs.
Thanks to their wide access channels and robust infrastructure, datacenter proxies can run continuously with minimal downtime. Interruptions are rare, and traffic limits or IP rotations are seldom applied.
What Other Types of Proxies Exist?
In digital terms, a proxy is a gateway that stands between a user and the online destination they’re trying to reach. This gateway helps mask personal information, providing a layer of privacy in an era where online security is more important than ever.
As privacy needs have grown and threats have evolved, proxy technology has diversified to address specific use cases. While datacenter proxies remain the most common—thanks to their availability and lower cost—there’s now a wide range of specialized proxies designed for different scenarios.
Below are some of the main types you’ll encounter:
Residential proxies: Similar to datacenter proxies in structure, but use IPs assigned by real ISPs at physical addresses. This gives users a legitimate online presence, though at a higher cost.
Mobile proxies: Assign your device an IP from a local mobile network access point (e.g., a cell tower). These IPs often rotate, and because multiple devices may share the same IP, they offer an extra layer of anonymity. Functionally similar to residential proxies but with added privacy benefits.
Forward proxies: Any proxy that gives the user a secondary IP to access websites, protecting the user’s identity. Both residential and datacenter proxies fall into this category.
Reverse proxies: Instead of protecting the user, reverse proxies protect websites. Visitors connect to the proxy first, which filters, screens, or manages requests before granting access to the actual server.
Public, shared, and private proxies:
Public proxies are free or low-cost but often slow, insecure, and overloaded.
Shared proxies are used by a smaller group—such as an entire company—and offer better performance and security.
Private proxies are dedicated to one user, offering the best speed and security, but at the highest price.
Anonymous, high-anonymity, and elite proxies:
Anonymous proxies hide your IP but reveal that you’re using a proxy.
High-anonymity proxies hide both your IP and the fact that you’re using a proxy.
Elite proxies go further, either providing a false but realistic set of credentials or removing any trace of proxy usage altogether.
Transparent proxies: Often used by organizations to monitor and control internet use (e.g., blocking specific sites). They identify the user rather than hide them and are not intended for privacy.
Rotating proxies: Automatically change your assigned IP at set intervals or per request. This makes it harder for websites to track your activity over time.
How Do Datacenter Proxies Work?
Datacenter proxies function in much the same way as other types of proxies:
Setup – The user installs the proxy’s gateway software or configures their device to connect through the proxy.
Connection – When the user goes online, their traffic is first routed through the datacenter, where they’re assigned an available IP address from the center’s server pool.
Browsing – With this new IP, the user can visit websites with a degree of anonymity, as their real IP is hidden.
This process works on virtually any device that has the proxy configured. While some companies provide datacenter proxies for free, most use a paid subscription model. For users who need multiple IPs—such as for web scraping, SEO monitoring, or large-scale testing—providers often lease IP addresses in bulk.
Where Do Datacenter Proxies Come From, and Who Owns Them?
The datacenter proxy market is well-established and highly diverse. One of their key advantages is the ability to provide IP addresses in almost any region worldwide.
Setting up a datacenter proxy service is relatively straightforward:
Secure space to house the servers.
Acquire enough servers to offer a wide range of IP addresses.
Configure those servers to function as proxy servers.
Connect them to the internet and start serving customers.
Because the model is simple, providers range widely in scale and pricing. Many ISPs also offer datacenter proxies—alongside other proxy types—using legitimate IP address allocations from their own networks.
A quick web search will reveal countless additional providers, with pricing typically based on either bandwidth usage or the number of IPs. Large-scale leases can cost tens of thousands of dollars per month.
Can Datacenter Proxies Be Used for Fraud?
Proxies of all kinds are a common tool in digital fraud—and datacenter proxies, being inexpensive, plentiful, and easy to obtain, are a particular favorite among fraudsters who need large pools of IP addresses.
For example:
Credit card fraud: Criminals may pair stolen credit card data with a datacenter proxy to appear as though they’re located near the legitimate cardholder. On a poorly protected storefront, this may be enough to pass as a genuine customer.
Botnet operations: Fraudsters controlling large botnets can lease bulk IPs from a datacenter and rotate them regularly, making the infected machines harder to detect and block. These botnets can then be used for large-scale criminal activity.
Advertising & affiliate fraud: Click fraud is a common scheme in which a botnet generates fake ad interactions to exploit cost-per-click or cost-per-impression models. Proxies can disguise this traffic as high-value impressions, tricking ad networks and inflating revenue.
While datacenter proxies are offered by legitimate companies (including ISPs), they are also a convenient and powerful tool for malicious actors. In fact, they are often the most common proxy type found in online fraud.
How Can You Fight Fraud Involving Datacenter Proxies?
Fighting proxy-enabled fraud is a delicate balance between blocking bad actors and maintaining a frictionless experience for legitimate customers. Many anti-fraud systems will flag datacenter IPs as suspicious—but outright blocking all proxy users risks alienating real customers who value privacy.
Fortunately, a user’s IP address is only one piece of the puzzle. Sophisticated anti-fraud tools collect dozens or even hundreds of additional data points to build a user profile, including:
Device fingerprinting: Screen resolution, browser plugins, installed fonts, system languages, and other unique technical traits.
Velocity checks: Monitoring the frequency and speed of requests or transactions to spot abnormal patterns.
Proxy detection: Identifying whether an IP is associated with a known proxy or hosting provider.
With advanced fraud prevention software—tailored to a company’s specific risk profile—businesses can detect malicious proxy usage without rejecting legitimate customers. When implemented effectively, the savings from blocked fraud attempts far outweigh the costs of the solution.
What Are Datacenter Proxies Used For?
Datacenter proxies combine speed, affordability, and online anonymity, making them useful for a wide range of applications.
While anonymity can be exploited for fraudulent purposes, datacenter proxies themselves are neither illegal nor inherently malicious. Most legitimate uses involve masking identifying information to bypass certain domain restrictions or security protocols.
Common legitimate uses include:
Market research: Many businesses use datacenter proxies to run tools like web scrapers, which collect data from specific websites for analysis. This can include tracking competitor pricing across marketplaces, spotting emerging news stories, or monitoring updates on rival platforms.
Accessing geo-restricted content: Some services restrict access to specific regions. Leasing a proxy IP located in an allowed area is a simple way to bypass these limits.
Marketing quality assurance: By routing traffic through proxies in their target markets, companies can verify that ads are being displayed correctly and reaching the intended audience.
Overcoming IP bans: Since datacenter proxies hide a user’s real IP, they can help regain access to sites where an account or address has been blocked. For example, a social media manager might use them to operate multiple accounts without triggering restrictions.
Sneaker drops & automated purchases: High-demand product releases—like limited-edition sneakers—often limit purchases per customer. Sneaker bots, paired with datacenter proxies, allow users to appear as multiple buyers and secure more units than normally permitted. This practice sits in a legal gray area, depending on the retailer’s terms and conditions.
Pros and Cons of Server (Datacenter) Proxies
Datacenter proxies offer a number of clear benefits, but they also come with drawbacks you should be aware of.
Pros:
High bandwidth and speed: Capable of handling large volumes of traffic with fast connections.
Cost-effective: Often provide unlimited or low-cost traffic compared to mobile or residential proxies.
Excellent stability: Minimal interruptions or reconnections.
Static IP availability: IP addresses can be tied to a specific hosting client for years, allowing for consistent use.
Custom configurations: Hosting clients also get computational resources, enabling custom proxy setups for purposes such as traffic compression, ad blocking, or load balancing.
Scalability: With a large pool of server proxies, they can be used in a rotating setup, similar to other rotating proxy services.
No inherent business limitations: Suitable for a wide range of commercial and technical applications.
Cons:
Easily detectable: Hosting company IPs stand out in regular internet traffic and are easy to identify.
High block risk: These IPs are often flagged or blocked by anti-fraud systems because they don’t carry typical “residential” traffic patterns.
Pre-existing blacklists: Many large websites and services already block datacenter IP ranges, raising the risk of access issues for tasks like web scraping.
Variable connection quality: Some target sites may respond poorly to datacenter IPs, requiring a larger IP pool to offset failed connection attempts.
❓ Frequently Asked Questions
What are datacenter proxies?
Datacenter proxies are IP addresses provided by data centers or cloud hosting services. They are not tied to an Internet Service Provider (ISP) and are known for their high speed, scalability, and cost-effectiveness.
Are datacenter proxies good for automation?
Yes. Their fast connection speeds and ability to handle a high volume of requests make them ideal for automation tasks like web scraping, SEO monitoring, and bulk account creation.
How do datacenter proxies compare to residential proxies?
Datacenter proxies are generally faster and more affordable, but easier for websites to detect. Residential proxies are harder to block but come at a higher cost.
Are datacenter proxies legal to use?
Yes, as long as you use them for lawful activities. Avoid using proxies for hacking, fraud, or scraping data from private, restricted websites.
Can datacenter proxies bypass geo-restrictions?
Yes. By choosing proxies located in specific regions, you can access geo-blocked websites and content. However, some platforms have stronger detection systems that may still block them.
What are the main disadvantages of datacenter proxies?
The biggest drawback is their detectability—websites with strict anti-bot measures may block them more easily than residential proxies.