See what Google says about hosting types:
DEDICATED VS. SHARED
Hosting service is inevitable for any website. It works like this: if you want your content published on the internet, it needs to be stored somewhere. To put it in very simple terms, it’s like a public computer, where visitors to your site come to see your content.
Hosting services are offered by companies like Hostgator, Bluehost, GoDaddy, among others. Usually in two ways:
Shared
Your site is on a server with other sites. Each server has an IP address, which is shared among all the sites on the same server. Usually, these services are much cheaper than dedicated hosts.
Dedicated
Your site is on a unique host, with a unique IP number. They can cost up to 200 times more than a shared host.
So… is dedicated hosting better for Google?
To answer directly: NO.
Google does not differentiate in any way the type of hosting you have. In fact, from the outside, it is almost impossible to tell the system in which the site is hosted: single server, a group of servers, a data center, or multiple data centers.
The only thing you need to keep an eye on, and it’s not new, is your site’s speed. Hosting types, both shared and dedicated, can become overloaded and make your site very slow.
Although dedicated services are usually faster, as the server traffic is only yours, this is not the rule. They can also become overloaded or simply be slow.
So, if you have a small business and don’t want to invest in a dedicated system, it’s okay to host your site in a shared manner. Just make sure the service offered is of quality, keeps your site’s speed high, and doesn’t have too many downtimes.
What if the other sites on the server are bad?
This is a very valid doubt, as one of the aspects Google uses is how relevant and trustworthy your site is. What then happens if my website is sharing an IP with a bunch of unreliable sites?
ABSOLUTELY NOTHING
Besides, most hosting services (at least the best ones) monitor these things, and Google’s artificial intelligence is developed enough to recognize each site individually.
Each site is treated according to its own merits, and not in comparison with the neighbors.
Is it worth investing in dedicated hosting?
For SEO purposes, no. It is worth investing in quality hosting that supports the amount of traffic consistent with your business and that is stable.
Reasons to invest in dedicated hosting depend on your business needs. Some examples would be if your business requires extra levels of security or if you regularly receive high volumes of traffic.
Unless the need comes from your business, invest in a good shared hosting system, and that’s it. There are good plans out there starting from US$3 per month!