Today everybody is after making money as quickly as possible. But for making quick money people take different paths. Majority of people work hard and honestly and follow best practices of SEO within ethical limits. But there are others who unfortunately believe that money can be made only through unethical practices and use all forbidden ways to get to top of SERPs.
People abuse technology; many SEO companies use unethical practices and if you hire one by mistake you can not plead ignorance. Actually speaking a hosting company does not affect search engine ranking, as long as it is not blacklisted. But it can negatively impact your SEO indirectly. Any hosting company that promises search engine ranking is least trustworthy since it is not within its capabilities.
It is your selection of hosting plan that affects your SEO rather than the hosting company as such. Host company that provides shared servers to its customers can affect your SEO at will. Unfortunately up and coming webmasters make mistake of selecting such cheap hosts who have no regard for ethical practices. Serious problems arise when certain problem creators among users start doing things which big search engines frown upon.
Users, who recklessly accumulate links, promote objectionable material, spam emails and do objectionable transactions can cause blacklisting of your entire server or IP.
If you choose a wrong host that is using shared server, your server’s IP address can come on spam list and fall under black hat technique and compel Google to penalize you. To avoid taking risks you must upgrade to a better hosting plan. To eliminate risk of shared servers affecting your SEO, you should go for a dedicated server to host with. Though expensive it will be the right solution for all your problems.