What Is An Internet Exchange Point?
An internet exchange point (IXP) is a location at which companies that provide internet infrastructure connect to each other’s networks. These locations represent the edge of their networks and allow them to connect with each other to transfer data outside of their own network and to the wider internet. These locations are often in cities or other central locations so that the companies can shorten the path to transit to other networks and thus improve network latency and speed and reduce costs.
An IXP is simply a physical location that contains the network switches required to route traffic between different network providers. These providers typically share the costs of the physical infrastructure required to do this. In some cases networks may be charged for the delivery of data through a third-party network and in such cases it makes better economic sense for them to set up an IXP to save on these costs.