Internet & Networking

Internet exchange point (IXP)

Also known as: IXP, internet exchange, peering exchange

An internet exchange point (IXP) is a physical location, usually in a data centre, where internet providers, content companies, and other networks connect to each other to exchange traffic directly.

Without local exchanges, data between two nearby networks might travel hundreds or thousands of kilometres to meet elsewhere. While IXPs are invisible to most users, they lower costs, speed up connections, and keep more of a country's traffic within its borders.

Internet exchange point (IXP), explained at three levels

At home

Picture two neighbouring stores that ship parcels to each other through a depot in another country, because that is where both courier companies meet. An IXP is a shared depot in your own city where many networks agree to hand traffic straight across. Your streaming service and your internet provider can plug into the same exchange, so your video takes a short local path instead of a long detour.

At work

An internet exchange point is a shared facility, usually inside a data centre, where ISPs, content companies, cloud providers, and other networks connect to swap traffic directly. Instead of paying a third-party carrier to carry every byte, members exchange local traffic over the IXP. Businesses benefit through faster connections to local customers, lower bandwidth costs for providers, and more resilient routes.

Real-world examples

At home

Sophie learned that an email she sent from Montreal to a colleague in Toronto might once have passed through Chicago. Local exchanges now help keep more of that traffic inside Canada.

At work

Carlos runs a small regional ISP in Nova Scotia. Connecting to a local internet exchange let him swap traffic directly with content providers, cutting costs and improving streaming speeds for customers.

How it compares

featureInternet exchange point (IXP)IP transit
Traffic exchangeDirect, many networks in one placePaid route to the whole internet
CostPort and colocation feesPay per bandwidth
ReachNetworks present at the IXPEverywhere
LatencyLow for local trafficVaries

IXPs make local traffic cheap and fast. Transit covers everything else.

For analysts

For regional ISPs and hosting firms, I'd model the transit savings of joining a local IXP. It often pays for itself while improving customer experience.

History & origin

In the early commercial internet, networks met at a few large exchange points, such as MAE-East near Washington, D.C., set up in 1992. Europe built major non-profit exchanges, including LINX in London in 1994, AMS-IX in Amsterdam, and DE-CIX in Frankfurt, now among the busiest in the world. The Toronto Internet Exchange (TorIX) was founded in 1996 and became one of North America's largest. Researchers at the University of Toronto's IXmaps project showed that a lot of Canadian traffic 'boomeranged' through the US, even between Canadian cities. The Canadian Internet Registration Authority (CIRA) helped fund new exchanges in cities across Canada to keep traffic local. In my view, IXPs are some of the most important and least-known pieces of digital sovereignty.