What Are Virtual Location Servers and Why Do VPNs Offer Them?

When you sign up to a VPN provider, one of the key advantages (beyond privacy) is that it lets you access the internet in an overseas territory as if you were really there.Most VPN providers offer multiple servers in countries around the globe. But these servers aren’t always where they say they are. These are known as virtual location servers. But why do VPNs use them, and what privacy risks do these servers pose?

The Basic Requirements of a VPN Provider

When you sign up to a VPN provider, you expect certain features. Typically, these are:

In addition, you might expect various bells and whistles, such as defeating Netflix region-blocking, or smart DNS for game consoles.

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When it comes to choosing a VPN server, the locations are typically clearly listed. This means, for example you might connect to a server in Paris, France, or Sydney, Australia. Various advantages come from using a VPN in this way, not least tosave money booking flightsor shopping online.

If you live overseas, you may also use a VPN to enjoy the internet in your own country. This is more important if you speak English as a second language and come from a nation with a unique culture.

Servers and a system admin

Physical vs. Virtual vs. VPS vs. Virtual Location Servers

A physical server is a standard server—anything from a small computer to a vast rack in a datacenter—that hosts or routes data and whose IP address matches its location.

A virtual server can be hosted on a standard server; typically, multiple virtual servers will be hosted on one physical server. This saves space and money, although there is an impact on performance.

Server rack

Virtual Private Servers (VPS), on the other hand, are virtual servers rented by a third party. You or I could rent VPS space on a virtual server setup, most likely for web hosting. A VPS is unsuitable as a VPN due to the security requirements a VPN server demands.

Meanwhile, a virtual location server is one that is both virtual (running in a virtualized environment on a physical server) and has an IP address that doesn’t match its location.

Dell monitor showing Windows 10 desktop

IP address ranges are available to be bought or leased in bulk, often by ISPs and VPNs, but any other company can also buy them.

What Is a Virtual Location Server?

Offering physical servers around the world is clearly advantageous. But if they’re not where you think they are, virtual location servers can prove a problem.

Moreover, if you don’t know you’re using a virtual location server, you could be at risk.

firefox logo with yellow warning symbol

Virtual location servers behave in thewayyou would expect; they’re just notwhereyou would expect. The consequences of this might be severe, depending on what you’re using your VPN subscription for.

On the other hand, it might simply be frustrating. For example, you might think you’re using a US-based VPN server to view the American Netflix library, only to find the server is actually based in Mexico. This would be enough to block the server from viewing Mexico’s Netflix.

Why Do VPNs Employ Virtual Location Servers?

VPN companies don’t use virtual locations to annoy or irritate. They’re not attempting to mss around with your Netflix access. (If anything, VPN companies love Netflix and want to improve availability.)

Rather, it can be difficult to find a reliable datacenter to host the VPN server in a particular country. Or it could be due to local privacy and security legislation.

For example, in a country where VPNs are banned, some providers offer VPN servers that use IP address ranges reserved for that country. In June 2022, ExpressVPN followed India’s ban on VPNs by removing its servers from the country.

As you’re able to see, it did this by providing Indian IP address ranges on its servers in other countries. This may have an undesirable effect on accessing certain streaming libraries, but it maintains privacy for ExpressVPN’s Indian subscribers.

How to Tell if You’re Using a Virtual Location Server

Many VPN providers use virtual location servers. Along with ExpressVPN, CyberGhost and Private Internet Access (PIA) have been known to employ this strategy. At the time of writing, NordVPN does not use virtual IP addresses on its servers.

To find out if you’re using a virtual location server with your current VPN connection:

If you’re unhappy about this, or find that VPN use is impacted by virtual locations, consider switching providers.

Virtual Location Server Risks

Unfortunately, using a virtual location server comes with some risks.

For standard VPN users, the worst that can happen is if Netflix doesn’t work because the server you’re connecting through isn’t where it is physically listed.

But if your reason for using a VPN is to avoid scrutiny from an aggressively observant government, connecting to a VPN via a virtual location can be dangerous. For example, you might choose a VPN based in a territory that wasn’t in aFive Eyes country, but connect to a virtual server that is.

Using a VPN? Take Care With Virtual Location Servers

VPNs offer a great way to view the internet in a private and secure manner. They afford the option to view overseas Netflix streaming libraries, save money shopping online, and bypass blocks on torrenting.

VPNs also obscure your activity from ISPs and government surveillance. They’re a great tool to circumvent security state apparatus, and have proved vital to whistleblowers.

But using a virtual location server can be considered risky if you don’t know where it is based. As such, you need to be aware of the servers your VPN offers before you connect—perhaps even before you open a subscription.

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