What is an internet exchange?

Last updated September 24, 2026 · Reviewed by James San Filippo

An internet exchange (IX or IXP) is a shared physical location where many networks connect to each other directly and swap traffic, instead of paying a transit provider to carry it. That shortens paths, cuts latency and reduces transit cost. Colo Solutions in Orlando hosts a point of presence for DACS-IX South, an internet exchange with 1G, 10G and 40G ports, so a customer can peer in the building by cross connect rather than routing traffic out of the metro.

Key figures
What it is A shared fabric where networks interconnect and exchange traffic directly
Also called IX, IXP, peering point
Versus transit Peering swaps traffic between two networks; transit buys reach to the whole internet
Main benefits Lower latency, fewer hops, reduced transit cost
Exchange at Colo Solutions DACS-IX South, with a point of presence at 100 W. Lucerne Circle, Orlando
Port speeds 1G, 10G and 40G
Protocols IPv4 and IPv6
Other DACS-IX South site DataBank Atlanta, 760 W Peachtree Street NW

The short version

An internet exchange is a place where networks meet.

Without one, traffic between two networks generally travels through a third — a transit provider paid to carry it. That is more hops, more distance, and a bill. At an exchange, the two networks connect directly and hand traffic straight to each other.

Peering versus transit

The distinction is the whole point, and it is frequently muddled.

Transit is buying reach: you pay a provider to carry your traffic to everywhere on the internet. Peering is an agreement between two networks to exchange traffic between themselves directly, usually without money changing hands.

Peering does not replace transit — it only covers destinations on the networks you peer with. What it does is take the busiest, closest traffic off the transit bill and shorten its path.

Why it makes things faster

Three effects, all from the same cause:

  • Fewer hops. Direct handoff instead of traversing an intermediate network.
  • Shorter distance. Local traffic stays local, rather than travelling to a larger metro and back — the classic case being traffic between two Orlando networks that would otherwise route via Atlanta or Miami.
  • Fewer parties. Every network in the path is one more place congestion or a routing change can affect you.

How this relates to a colocation facility

An internet exchange needs a neutral, carrier-dense building to sit in, which is why exchanges live in facilities like this one rather than in carrier-owned buildings.

Colo Solutions hosts a point of presence for DACS-IX South, the Southeast region of the DACS-IX peering fabric. Its other site is DataBank in Atlanta, so a port here reaches networks peering in both cities. Ports are offered at 1G, 10G and 40G, over IPv4 and IPv6, and Colo Solutions peers on the exchange itself as AS16557. The exchange is listed on PeeringDB, which is the record to check for current members.

Joining is a cross connect from your cabinet to the exchange’s equipment in the meet-me room, and a port order with DACS-IX.

Exchange or cross connect?

They solve different problems, and a carrier-dense building gives you both.

  • Peer on the exchange when you want to reach many networks at once over one port, for traffic you would otherwise pay transit to carry.
  • Cross connect directly when one network carries enough of your traffic to justify a dedicated link, or when you are buying transit or a private circuit from a carrier. Nine carriers have equipment in the building — the list is on the connectivity page.

Most networks end up using both: a direct link to the one or two networks that matter most, and the exchange for everything else it can reach.