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Peering exchange is a concept in which global or long distance networks have the ability to cooperatively share data routing methods, which facilitates more efficient routing for each party. This type of agreement enables more productive and wider reaching networks, where without a peering exchange, networks would have to seek out additional routes for data packets.
A peering exchange may refer to an agreement between networks or a centralized partner that enables network sharing, collaboration or common points for data routing. Central peering exchanges operate in certain locations to allow the extension of data transfer networks through those locations. Internet Protocol (IP) protocol peering exchanges typically advertise effective speeds and connectivity support, along with other features that appeal to a network that needs to route data through a given region.
The surge in dedicated peering exchange partnerships is a sign of a global and well connected IP infrastructure that allows for more efficient global data transfers. These systems, along with high-speed lines across continents and through waterways, are harbingers of a data age where the norm is fast digital communication.