Cloud & Software Development

Cloud egress fees

Also known as: egress fees, data egress charges, data transfer out fees, egress charges

Cloud egress fees are charges cloud providers apply when data leaves their network, such as when users download files, data moves to another cloud, or backups are restored to an office.

Moving data in is usually free, but moving it out is often billed per gigabyte. Egress fees can make cloud bills unpredictable and make switching providers expensive. While major providers began waiving fees for customers leaving entirely in 2024, everyday egress charges still apply.

Cloud egress fees, explained at three levels

At home

Egress fees are like a storage unit that lets you move boxes in for free but charges for every box you take out. Cloud providers usually let you upload data at no cost, then charge a few cents per gigabyte when data leaves their network, such as when people download files or you move data elsewhere. Small amounts cost little, but big moves add up.

At work

Cloud egress fees are charges for data leaving a cloud provider's network, such as customers downloading files, data moving to another provider or backups restored to an office. Uploading is usually free, while outbound data is billed per gigabyte. Businesses care because egress can make bills unpredictable and makes switching providers expensive, so data flows belong in every cloud cost estimate.

Real-world examples

At home

Thomas chose a cheap cloud backup service for his photos. He later learned restoring everything would cost more than a year of storage.

At work

Fatima manages cloud costs for a Halifax video production company. Moving video delivery to a CDN with low egress costs cut their monthly bill by a third.

How it compares

featureCloud egress feesIngress
DirectionData leaving the cloudData entering the cloud
Typical costCharged per GBUsually free
ImpactCan be largeMinimal
Lock-in effectIncreasesNone

Getting data in is free. Getting it out costs money.

For analysts

In cloud business cases, I'd model data flows, not just storage and computing. Egress is the line item most often missing from early estimates.

History & origin

Cloud providers have charged for outbound data transfer since the early days of AWS in 2006, while inbound transfer was typically free. Critics argued this created lock-in, and Cloudflare publicly campaigned against high egress fees, launching its R2 storage with no egress fees in 2022. Regulators took notice: the UK's Competition and Markets Authority investigated cloud competition from 2023, and the EU Data Act, which began applying in September 2025, required providers to phase out switching charges. Google announced in January 2024 that it would waive egress fees for customers moving to another provider, and AWS and Microsoft followed in March 2024, with conditions. In my view, egress fees are the cloud's equivalent of a hotel minibar: easy to ignore until the bill arrives.