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Yes, we do allow proxies as long as you stay within your monthly bandwidth quota. If your site causes other sites on the server to slow down due to too much CPU consumption, your account may be suspended until you upgrade or resolve the issue.
Our servers located in the Burst datacenter. However, we are separate from Burst and offer our own in house support, etc. More information on our datacenter can be found here: http://sustahost.com/datacenter.html