How does VPC peering work, and what are its limitations?

VPC Peering is a networking connection between two VPCs that enables private communication using their private IP addresses.

Traffic stays on the AWS backbone network and does not traverse the public internet

limitations of VPC Peering:

  • No transitive routing
  • No overlapping CIDR blocks
  • Difficult to manage at large scale
  • No centralized route management
  • Cross-region data transfer costs may apply
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