Finding Good Proxy Hosting
Proxies have a special characteristic: They use up insane amounts of bandwidth. And by that, we mean that a low to medium traffic proxy can easily use up 5GB/day of bandwidth, even more maybe.
Because of this, most web hosts do not allow you to run proxies on their shared hosting. Make sure that you check a TOS (terms of service) of a host before you run proxies on their servers!
Instead, you need a special type of hosting called ‘Proxy Hosting.’ There are several sites that have their servers especially built to host proxies, so you can get hosting from them.
Shared Hosting
While many people tend to go straight to a VPS or Dedicated Server, you can easily run a small proxy network on Shared Hosting. This is perfect for beginners.
Virtual Private Server (VPS)/Dedicated Server
These can be grouped together because the basically have the same specifications. The trick here is that you want a lot of RAM (for those traffic bursts), bandwidth, and great support. You also want a light weight control panel (Don’t go with cPanel, it uses up 256MB of RAM on it’s own).
A minimum of 768MB RAM is recommended, and LxAdmin or DirectAdmin are good control panels.
Once again, make sure that your hosting company allows proxies on their VPS.