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Home/Questions/Cloud/Tools/How would you implement VPC peering between two AWS accounts?

How would you implement VPC peering between two AWS accounts?

Cloud/Toolshard0.8 min readPremium

**Why VPC Peering**: Direct private connectivity without traversing the public internet—lower latency, no egress charges for cross-account traffic within the same region. **Architecture**: (1) In Account A, create a peering connection request to Account B using peer account ID...

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Frequency
Low
Asked at 1 company
Category
179
questions in Cloud/Tools
Difficulty Split
104E|27M|48H
in this category
Total Bank
1,863
across 7 categories
Asked at these companies
Persistent Systems

Why This Question Matters

This hard-level Cloud/Tools question appears frequently in data engineering interviews at companies like Persistent Systems. While less common, it tests deeper understanding that distinguishes strong candidates.

How to Approach This

This is a senior-level question that tests architectural thinking. Lead with the high-level design, then drill into specifics. Discuss trade-offs explicitly - there is rarely one correct answer. Show awareness of scale, fault tolerance, and operational complexity.

Expert Answer
160 words

Why VPC Peering: Direct private connectivity without traversing the public internet—lower latency, no egress charges for cross-account traffic within the same region. Architecture: (1) In Account A, create a peering connection request to Account B using peer account ID and VPC ID. (2) Account B accepts. (3) Update route tables in both VPCs—add routes to peer CIDR via pcx-xxx. (4) Update security groups to allow peer CIDR. (5) Ensure no overlapping CIDR blocks—transitive peering is not supported. Scalability trade-off: Peering is non-transitive; with N VPCs you need N*(N-1)/2 peering connections—a 10-VPC mesh = 45 connections. Beyond ~20 VPCs, Transit Gateway is the right pattern. Cost: Same-region peering has no data transfer charge; cross-region peering incurs $0.02/GB (both sides). At 10TB/month cross-region, that's $400+—Transit Gateway may be cheaper for complex topologies. Implementation: Terraform/CloudFormation for repeatability. Enable DNS resolution in peering for private hosted zones. Use separate route tables per subnet if you need to restrict which traffic goes peer vs. internet.

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