Comparison

Updated October 25, 2026

· ~2 min read

Connecting VPCs in 2026: Peering vs Transit Gateway vs Cloud WAN vs PrivateLink vs VPC Lattice

Transit Gateway
Cloud WAN
VPC Lattice
PrivateLink
Networking

Connecting VPCs used to mean peering or Transit Gateway. Now there are five options, and they work at different layers. Peering, Transit Gateway and Cloud WAN connect networks: anything can reach anything the route tables allow. PrivateLink and VPC Lattice connect services: a consumer reaches one service, and nothing else, even across overlapping IP ranges.

Most organizations past a handful of accounts use one network-layer option and one service-layer option.

Pricing (US East)

Hourly

Per GB

Notes

VPC peering

None

Standard data transfer: free within an AZ, $0.01 each way across AZs

Not transitive; full mesh of n VPCs needs n(n-1)/2 connections

Transit Gateway

$0.05 per attachment

$0.02 processed

No processing charge on traffic arriving from a peering attachment

Cloud WAN

$0.50 per core network edge; $0.065 per attachment (N. Virginia)

$0.02 processed

Plus standard data transfer

PrivateLink

$0.01 per endpoint per AZ

$0.01 processed

Provider side runs an NLB

VPC Lattice

$0.025 per service

$0.025 processed

First 300,000 requests an hour free, then $0.10 per million; TCP resources priced separately

Worked example: 10 VPCs in one Region

Option

Fixed monthly cost

Per GB moved

Peering (full mesh, 45 connections)

$0

$0.01 each way across AZs

Transit Gateway

~$365 (10 attachments)

$0.02 plus data transfer

Cloud WAN, one edge

~$840 (edge plus 10 attachments)

$0.02 plus data transfer

Network layer vs service layer

Transit Gateway and Cloud WAN make networks reachable. Security then depends on route tables, security groups and network ACLs, and on IP ranges that do not overlap. That is the right model for shared infrastructure, on-premises connectivity and workloads that need many ports. PrivateLink and Lattice make one service reachable. The consumer never sees the provider's network, overlapping CIDRs do not matter, and in Lattice an auth policy can require a specific IAM role for a specific path. That is the right model for internal APIs between teams and for SaaS providers serving customers' VPCs. Lattice costs more per GB than Transit Gateway, so for high-volume flows such as replication or bulk data movement the network layer is cheaper.

Which one

Question 1 of 3

Do you need whole networks connected, or specific services?

Our verdict

**A few VPCs, simple needs:** peering. No hourly charge, but it does not scale past a small mesh and is not transitive. **Many VPCs, one or two Regions, on-premises links:** Transit Gateway. The standard hub, with route tables for segmentation. **A global network across many Regions with policy-defined segments:** Cloud WAN. More expensive per Region, much less to manage by hand. **Exposing one service to other accounts or customers:** PrivateLink. **Many services calling each other across accounts, with IAM authorization:** VPC Lattice.

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As of October 25, 2026. Provided as is, for general information, and accurate to the best of our knowledge on the date shown. Not legal, compliance, tax, financial or other professional advice. Prices, limits and vendor services change; check current vendor documentation before relying on anything here. Terms of use.