Direct Connect data transfer savings: when the dedicated line pays off

Quick answer

AWS Direct Connect provides a dedicated network link between your data center and AWS, and its main cost advantage is data transfer out: roughly $0.02 per GB over Direct Connect versus about $0.09 per GB over the internet, a saving of about $0.07 per GB. Against that you pay port hour fees (a 1 Gbps dedicated port is around $0.30 per hour, roughly $220 a month) plus any provider cross-connect charges. So Direct Connect pays off when your steady egress to on-premises is high enough that the per-GB saving exceeds the port fee. The break-even: at $0.07 per GB saved, roughly 3 TB a month covers a 1 Gbps port, and heavier egress saves thousands.

Direct Connect is usually pitched for its consistent, private connectivity between on-premises and AWS, but it also has a strong cost story that is often overlooked: it dramatically reduces the price of data transfer out. Internet egress is one of the most expensive things on an AWS bill, and moving that traffic onto a dedicated line cuts the per-GB rate by most of its value. The question is whether your volume justifies the port fees.

The rates that matter

Item	Approximate rate
Internet egress	~$0.09/GB (first tier)
Direct Connect data transfer out	~$0.02/GB
1 Gbps dedicated port	~$0.30/hr (~$220/mo)
Cross-connect	Provider-dependent

Data leaving AWS to the internet costs about $0.09 per GB for the first tier. The same data leaving over Direct Connect costs about $0.02 per GB, a saving of roughly $0.07 per GB. Against that saving you pay the port hour fee, about $220 a month for a 1 Gbps dedicated port, plus any cross-connect charges from the colocation provider.

The break-even calculation

With a $0.07 per GB saving and a $220 monthly port fee, Direct Connect breaks even at about 3.1 TB of egress per month (220 divided by 0.07, in GB). Below that, the internet is cheaper because the port fee outweighs the per-GB saving. Above it, Direct Connect wins, and the win grows fast. At 50 TB a month, internet egress is about $4,500 while Direct Connect data transfer is about $1,000 plus the $220 port, roughly $1,220 total, a saving of over $3,000 a month. The heavier and steadier your egress to on-premises, the more compelling the dedicated line becomes.

What the port fee buys beyond savings

The port fee is not purely a cost to overcome; it also buys consistent bandwidth, lower and more predictable latency, and a private path that does not traverse the public internet. For workloads that need reliable high-throughput connectivity to a data center, hybrid architectures, large data migrations, or steady replication, those qualities matter alongside the transfer savings. TheDirect Connect versus VPN comparison weighs this against a cheaper VPN that lacks the dedicated bandwidth and egress discount.

Making the decision

Estimate your steady monthly egress to on-premises. If it comfortably exceeds the break-even for the port size you would use, Direct Connect saves money outright, before counting the reliability benefits. If your egress is spiky or modest, a VPN or plain internet egress may be cheaper despite the higher per-GB rate. Consider a smaller hosted connection for lower volumes, which has a lower port fee and therefore a lower break-even. This egress-heavy math is the same dynamic behind manyegress optimization decisions.

Because the payoff depends on egress volume you can estimate, model it before committing to a port. Price your connectivity against the resource catalog so the port fee and the transfer savings are compared on real volume before you order the line.

FAQ

How much does Direct Connect save on data transfer?

Data transfer out over Direct Connect costs about $0.02 per GB versus about $0.09 per GB over the internet, a saving of roughly $0.07 per GB. Against that you pay port hour fees, about $220 a month for a 1 Gbps dedicated port, plus cross-connect charges. So Direct Connect saves money when your steady egress volume is high enough that the per-GB saving exceeds the port fee.

At what volume does Direct Connect pay off?

With a $0.07 per GB saving and a $220 monthly 1 Gbps port fee, it breaks even at about 3.1 TB of egress per month. Below that, internet egress is cheaper because the port fee outweighs the saving. Above it, Direct Connect wins and the win grows: at 50 TB a month it can save over $3,000 versus internet egress, even after the port fee.

What does the Direct Connect port fee cost?

A 1 Gbps dedicated port is about $0.30 per hour, roughly $220 a month, with higher rates for 10 Gbps and above and lower rates for hosted connections at smaller capacities. On top of the port fee you pay cross-connect charges from the colocation provider, which vary. The port fee is the fixed cost you must overcome with data transfer savings for Direct Connect to pay off.

Is Direct Connect or a VPN cheaper?

It depends on egress volume. A VPN is cheaper to set up and has no port fee, but it does not get the Direct Connect data transfer discount and lacks dedicated bandwidth. For heavy, steady egress to on-premises, Direct Connect's roughly $0.02 per GB rate and reliability justify the port fee. For modest or spiky traffic, a VPN or plain internet egress is often cheaper despite the higher per-GB rate.

Besides savings, what does Direct Connect provide?

Consistent bandwidth, lower and more predictable latency, and a private path that does not traverse the public internet. For hybrid architectures, large data migrations, and steady replication to a data center, these qualities matter alongside the transfer savings. So the port fee buys both a lower egress rate and reliability, which together justify Direct Connect for high-throughput hybrid workloads.

How does C3X help evaluate Direct Connect?

C3X prices your connectivity from Terraform before you deploy, so the Direct Connect port fees and the data transfer savings are visible in the pull request. Combined with your expected egress volume, that helps you find the break-even and confirm the dedicated line saves money versus internet egress or a VPN, at design time rather than after committing to a port.

What to do next

Model your Direct Connect break-even before you order a port. C3X reads your Terraform and prices your resources against a live catalog. Start with the quickstart.