Explanation
The valid alternative to maintain a deployed proxy technology while saving physical space in the data center by moving the network service to the virtualization infrastructure is NFV (Network Function Virtualization).
NFV is a technique that allows network functions, such as proxies, firewalls, routers, or load balancers, to be implemented as software applications running on virtual machines or containers. NFV reduces the need for dedicated hardware devices and improves scalability and flexibility of network services. References: CompTIA Network+ N10-008 Certification Study Guide, page 440; The Official CompTIA Network+ Student Guide (Exam N10-008), page 16-11.
NFV can be used to virtualize a wide variety of network functions, including proxy servers. By virtualizing proxy servers, organizations can save physical space in the data center and improve the scalability and efficiency of their networks.
To virtualize a proxy server using NFV, an organization would need to deploy a virtualization platform, such as VMware ESXi or Microsoft Hyper-V. The organization would then need to install a virtual proxy server appliance on the virtualization platform.
Once the virtual proxy server appliance is installed, it can be configured and used just like a physical proxy server.
NFV is a relatively new technology, but it is quickly gaining popularity as organizations look for ways to improve the efficiency and scalability of their networks.

GDPR stands for General Data Protection Regulation, which is a European Union regulation on information privacy and security. It applies to any organization that collects or processes personal data of individuals in the EU, and it sets out rules and requirements for data protection, consent, breach notification, and enforcement1 Reference
1: https://en.wikipedia.org/wiki/General_Data_Protection_Regulation