ISP proxies vs Datacentre proxies: What's the difference?

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Both ISP and Datacentre proxies are a form of proxy server. In other words they sit between devices and the internet at large, acting as a gateway to handle any website requests. 

As connections are made via the proxy server, the IP address of your device seems to be that of the proxy, not your own. 

Still, not all proxy servers are made equal. In this guide you'll learn more about both Datacentre and ISP proxies, as well as understand some important differences between the two.

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ISP Proxies 

ISP proxies (sometimes known as "residential proxies) use real IP addresses, supplied by ISPs (Internet Service Providers) to customers. The way this usually works is that individuals choose to enrol their device(s) into a specialized P2P network, allowing businesses to collect data. People who take part are usually compensated in some way such as through a cash payment or through free premium membership of an app. 

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Some advantages of using an ISP proxy include:


The IP addresses use by ISP proxies are for real devices belonging to real people. This makes them much harder to detect and block in bulk as sometimes happens for Datacentre proxies (see below), as they can rotate the IP address used each time you connect to a website.


Datacentre proxies tend to be hosted on cloud servers, so may seem to be connecting from the same locations. ISP proxies can be found all over the world. This can come in particularly useful for tracking the performance of your organization's ads in various countries, as you can just switch to a proxy in a different location.

Loads of Data

ISP/Residential proxies are better suited to allowing organizations to send multiple concurrent data requests. They mimic the ebb and flow of people who use the internet in a regular way. 

In other words, they don't send requests in rapid, robotic succession. This aids in evading rate limits and avoiding detection, making them ideal for web scraping and data gathering.

ISP/Residential Proxies also have their downsides, including:


In the nature of things, ISP proxies require the participation of many different people. This means they're more difficult to set up and keep current. This translates into higher costs for those that enter into partnerships with organizations using them. These costs can sometimes be justified depending on you deploy ISP proxies.


ISP Proxies have to rely on the bandwidth made available through home internet connections. This means that speed and therefore loading times for websites can take longer versus using a dedicated data centre.


When ISP proxies are deployed with the end user's consent, there are no legal or ethical considerations surrounding connecting to the internet in this way. However this goes out the window if the IP addresses aren't ethically sourced. 

If you're considering using ISP/Residential Program, make sure to ask your chosen provider if they offer ethical safeguards such as:

– Obtaining full consent of all participants in clear wording.

– Participants can opt/in out at any time.

– Zero collection of end-user data. 

Rotating IPs

Yes - one of the greatest advantages of ISP/Residential proxies can also be its downfall. If your chosen provider changes the IP address used each time, this can throw up red flags on social media sites, which generally expect users to log in from the same location each time. Some ISP proxies do offer static IP addresses though. Check with your provider if you're unsure.

Datacentre Proxies

Datacentre Proxies are proxies that are not affiliated with an Internet Service Provider (ISP). They're usually generated in bulk and maintained via cloud hosting services. A batch of Datacentre IPs is typically assigned to a single server through which data collection or other types of traffic can then be routed. This means the IP addresses generated can be used by many users at the same time. 

The advantages of using datacentre proxies include:


This is probably the main advantage of deploying datacentre proxies, as they're very easy to set up on cloud servers without enrolling individuals' devices. This makes them much less expensive than ISP/Residential proxies.


Given that datacentre proxies exist on cloud servers, there's usually less latency time for users who deploy them. Without the bottleneck of individual people's devices, they can also support much greater bandwidth, making them generally faster than ISP/Residential Proxies.

Static IPs

Although some ISP/Residential proxies can be configured to use a static IP address, this feature is much more common with datacentre proxies. Using a dedicated IP means that your proxy won't be blocked due to the bad behaviour of others. If you're using a proxy to manage social media accounts, you're also less likely to set off any warnings if you appear to be signing in from the same location each time.

There are also some disadvantages to deploying datacentre proxies. These include:


Some data centres use a shared pool of IP addresses. In other words, each time you use a proxy you can't be sure it hasn't been used before. If the associated IP address has been blocked by a site due to spammy activities or similar, you won't be able to use it for that online service. 

As we've learned there are datacentre proxy services which offer unsullied, dedicated IP addresses but these usually cost more than shared datacentre proxies.

Easier Detection

As datacentre proxies aren't linked to a physical device, they're much easier for websites to detect and block. Given that they also usually register a whole range of IP addresses, this can cause connectivity issues as all of these can then easily be blocked by the target site. 

Limited Location

While ISP/Residential Proxies are available for virtually every country in the world, data centres are only found in around 100 locations. This can limit the usefulness of data centre proxies if you want to access content from a different country, such as when checking foreign advertising content.

Datacentre vs ISP Proxies - top differences 

Datacentre and ISP proxies come with different pros and cons, which comes down to their differing features. Main differences between the two include:

Source IP

The source IP addresses for data centres come from cloud servers and are usually generated in bulk. On the other hand, IP addresses used by ISP/Residential proxies are provided by Internet Service Providers. 


Given that real people enrol their devices for ISP/Residential proxies they are much harder for websites to detect. Datacentre proxies on the other hand can be profiled due to the fact they're not linked to an ISP and their IP addresses are associated with known data centre locations.


Generally ISP/Residential proxies are slower than datacentre proxies. This is simply because connections are mostly routed through ordinary devices using home internet connections. Datacentre proxies, which make use of cloud servers, tend to be much faster as they can route the connection directly between itself, the target website and your device.


Given that ISP/Residential proxies involve enrolling individual users to take part in a P2P network, the setup and maintenance costs are much greater than that for a datacentre proxy.

Static IPs

Both I2P/Residential and Datacentre proxies can support using static IP addresses. However I2P/Residential proxies tend to rotate IP addresses each time you visit a site. Datacentre proxies are more likely to offer dedicated IP addresses, though this can cost more.

When should I use an ISP/Residential proxy?

Given that you now understand the differences between the two, there are some "best use" scenarios for deploying an ISP/Residential Proxy. These include:

Social Media Management

If you can use the same IP address for each account to avoid triggering warnings, ISP/Residential proxies are ideal for managing social media accounts. This allows workers in your organization to use the same accounts no matter where they're based, meaning you can easily carry out tasks like collecting data from customer reviews.

Checking out the competition

ISP/Residential Proxies make it very easy to switch your apparent location through rotating your IP address. This makes it easy to check out foreign competitors who are selling similar products and services to your own. This is useful for monitoring price changes in real time, as well as items for sale so you can adjust your own inventory accordingly.

Web Scraping

If you plan to carry out automated collection of data on websites in order to gather Business Intelligence, ISP/Residential proxies are an excellent option. This is because web scraping bots are much more likely to be able to avoid detection, given that the IP addresses used are less likely to be blacklisted.

When should I use a Datacentre Proxy? 

Given that Datacentre proxies exist on cloud servers and are easier to deploy, there are situations where they can be more useful than ISP/Residential proxies. These include:

Location Specific Content Verification

Although ISP/Residential proxies are harder to detect, some websites don't use advanced detection methods to block IP addresses. Some organizations like news agencies also maintain multiple websites in various countries.

In these cases datacentre proxies can be extremely useful for checking how content appears to someone connecting from a different location. It's also easy to switch to a different location and compare the website content there.

Speeding Along

In any situation where real-time information is most important, a datacentre proxy is much more likely to provide data like real-time pricing information, exchange rates and new products quickly.

Sneaker Bots

Certain types of shoes often come with a massive, instant demand as soon as they're released for sale online. Retail sites are aware of this and many have strict purchase limits and other tools to prevent new shoes from being bought in bulk. 

Sneaker bots tend to use use datacentre proxies to appear like different people instantaneously. Users are thus able to buy more pairs than would normally be allowed, presumably so they can be sold on. Naturally this may not be permitted under the websites' T&C. Many sneaker sites also have specific safeguards to block datacentre proxies. 

What other types of proxies are there?

While ISP/Residential and Datacentre proxies are most useful for marketing purposes, they aren't the only options available. Alternatives include:

Mobile Proxies

These are very similar to ISP/Residential proxies in that the proxy is assigned via a cellular provider from their nearest mobile connection point (usually a cell tower). This means other devices may share the same IP address. This can provide a greater level of anonymity but you risk being blocked due to others' bad behaviour when using the same proxy.

Transparent Proxies

These are usually deployed by organizations to manage users' internet connections - for instance a company might use a transparent proxy to control which websites employees can visit. This kind of proxy makes no attempt to disguise itself so can't be deployed for the use cases outlined above.

Anonymous/Elite Proxies

These proxies are theoretically specifically designed for privacy. Ostensibly such proxies delete any identifying information concerning connected users and try to obfuscate the fact that a proxy is being used from the rest of the internet. In practice the internet is full of free "anonymous" proxy services and there's no easy way to verify their claims of anonymity.

If you take your privacy seriously and need a proxy for data collection purposes, sign up with a legitimate provider like Bright Data

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The Bottom Line

Datacenter and ISP/Residential Proxies are set up and maintained in very different ways. They both can help conceal your IP address in order to carry out tasks like data collection. However each type of proxy comes with its own advantages and disadvantages. Take some time to research your use model in order to decide which is right for you. 

Nate Drake is a tech journalist specializing in cybersecurity and retro tech. He broke out from his cubicle at Apple 6 years ago and now spends his days sipping Earl Grey tea & writing elegant copy.