How do Datacenter Proxies Work and What are its Main Benefits?

By Cory Maki Cory Maki has been verified by Muck Rack's editorial team
Published on August 9, 2022

Are you wondering how to scrape data from various websites without getting caught or banned? Are you thinking if that even is possible? Yes, it is possible, and it can be done with datacenter proxies. You might ask why would I get banned? The simple answer is that the server receives an overwhelming amount of requests and it looks like spam or fraudulent activity, thereby banning you.

To prevent this, individuals or companies like PrivateProxy provide proxy services. So you can rent or buy proxy IP addresses to stay hidden or whatever are your legal purposes and finish the web scraping project. What are proxies? These are basically a set of IP addresses that keep alternating. Several organizations use datacenter proxies to perform competitor research. Let’s check the topic in detail and see the main benefits of datacenter proxies.

Getting into the basics

Datacenter proxies, as the name suggests, are proxy IP addresses belonging to data centers. Their main usage is to extract or scrape data from websites. It can be used to protect yourself from illegal usage of your data. Also, while scraping data, the website can’t ban you since your current IP address is unknown and the target server receives requests from various IP addresses.

How do they work?

Now that you know what datacenter proxies are, let’s understand how they function. A proxy is an intermediary server between you and the target website or platform. The proxies contain a unique set of IP addresses, which are different from the one being used. Let’s imagine, you need to extract a huge amount of data from a server.

If you use a datacenter proxy, the proxy IP address will send the request to get the data, and receive the data from the target website, and finally send the data to the user. It is an amazing way to be involved in web scraping projects where you need access to huge amounts of data without getting banned. Also, you can protect your original IP address, thereby protecting your personal data.

Main advantages

Using datacenter proxies has several benefits. One of them is your security and possibility to unblock the websites. Let’s see other benefits that are mentioned below.

Stay up-to-date

Several companies need to stay up-to-date and relevant to compete with the new and modern businesses. Therefore, companies scrape data and analyze them to make changes in their company. Proxies can be used to:

  • do market research,
  • analyze data of competitor companies,
  • simply to get information about the best company in your area,
  • Search useful data in a certain location. 

Using the original IP address can lead to removal of your IP address. However, datacenter proxies can never be caught. They are usually a set of 50-60 IP addresses. The number of IP addresses depend on the user, the company, and the amount of data to be scrapped. Those IP addresses keep jumping from one to another once you set them up.

Receive accurate market info

If you want to get relevant and accurate market information, using proxies is the best way. Most of the time, you receive information based on your internet behavior and that might be manipulated. For example, you stay in the US, therefore, you get the market prices of the US.

But you want to invest in a company in a different country. A proxy will help you to receive unbiased information about that company and if it is worth putting money in. In general, using a proxy hides the real IP address and helps you to receive accurate information about how the market is performing and where an investor should invest.

Special access to restricted content

There are many websites that cannot be accessed from certain regions or are banned in certain areas. Also, certain content is restricted and can only be used by a certain group of people.

If you want to have complete access to such a set of websites, using the original IP address can be dangerous. Using proxy IP addresses, scraping data from restricted websites will be a piece of cake. No one will know where the original IP address is.

Strategizing dynamic pricing

Online trends and pricing strategies change quickly, and one can keep up using datacenter proxies. Such rapid changes in pricing of virtual stuff is called dynamic pricing. If you as an online business owner have the old pricing strategy, then you won’t get new customers.

Therefore, one needs to know what changes have occurred and how to implement those changes in your company. You need quick, reliable, and current data to use dynamic pricing for your online products and services. Sometimes, such data is restricted or requires scraping. Using your IP address can overload the target server, and letting them directly towards you. Datacenter proxies can help you prevent banning, as well as get relevant information at a high speed.

Detect fraudulent activity

Digital advertising fraud is basically an ad that makes you pay money, but you do not receive the product or service. Or they take your credit card details and cash in without your knowledge. The amount of money that is invested in ad fraud is forecasted to increase up to $100 billion by 2023 according to the PrivateProxy research.

So one can imagine how much time and money is being invested into such fraudulent activities, and the ways to stop are less except datacenter proxies. Datacenter proxies can be used by major advertisers to detect ad fraud  at a rapid rate and prevent them from scamming millions of people.

Final thoughts

In conclusion, datacenter proxies have several benefits as mentioned above. In addition to those, one can also protect their data and surf the internet without any fear of data stealing. But the ones for personal protection are residential proxies, whereas datacenter proxies come from the cloud and are majorly used by organizations, companies, and other businesses.

Also, the market investors and market researchers have great utility of datacenter proxies to perform accurate research and analyze the market.

By Cory Maki Cory Maki has been verified by Muck Rack's editorial team

Cory Maki is a former Staff Editor and the Business Development Manager at Grit Daily.

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