In 2025, global internet bandwidth increased by 23%, pushing total international capacity to 1,835 Tb/s, according to a recent TeleGeography report. That works out to a 24% compound annual growth rate (CAGR) over the past four years, highlighting the ongoing build-out of global connectivity. In some cases, the internet is growing faster than traditional physical network infrastructure can support.

The growth of streaming services, cloud platforms, and AI applications is increasing pressure for service providers to deliver greater bandwidth and reliability for end users, while for enterprises the adoption of edge computing, software-as-a-service (SaaS) platforms, real-time applications, and distributed workforces are prompting the re-evaluation of connectivity models.

In today’s digital economy, business success can depend on reliable connectivity, with companies requiring stable, low-latency connections to partners, customers, and platforms to operate effectively. Expanding operational reach while keeping services running smoothly and at the same time managing costs is a critical challenge across all markets. As such, many companies are exploring new methods of connecting to the digital ecosystem. Rather than relying on physical infrastructure, they are turning to virtual networking models instead, such as remote peering. This enables connections to be established via software-defined, shared infrastructure, without physical presence.

The hardware issue

For many decades, companies have utilized direct peering at internet exchange points (IXPs) as the standard model for exchanging traffic at volume locally while accessing the broader digital ecosystem across regions. This method provides them with control over network performance and data flows, but it also creates a number of unique operational challenges.

Internet Society Pulse reports that as of January 2026, there are 1,029 active IXPs in operation worldwide. Direct peering requires companies to establish a physical presence at each chosen exchange before accessing its network. This involves them shipping routers, securing rack space, arranging power and cabling, and managing ongoing maintenance. It is a time-consuming and expensive process, and can even be entirely unfeasible for smaller companies. Bringing a new region online can take months, with significant capital investment required upfront.

Additionally, the direct peering model is difficult to scale as it depends on port and capacity availability and is constrained by fixed port sizes, which prevents incremental scalability. For most companies, deploying and maintaining hardware in every target market is simply not practical. This can significantly limit regional expansion and new revenue growth.

Going remote via virtual networking

Remote peering offers a solution to the physical constraints of direct peering. It allows companies to connect to IXPs without owning hardware at each individual location. Instead of building and maintaining a local presence, they use the existing backbone infrastructure of a third-party provider to establish connectivity to the IXP.

Critically, by partnering with experienced network providers, this form of virtual networking enables companies to enter new markets quickly and efficiently. There is no need to purchase and ship routers or onboard local talent to perform the installation and maintenance of equipment. Since the physical infrastructure already exists, companies can become operational faster and deliver services to end users at a lower total cost compared to traditional methods.

Remote peering eliminates the complexities associated with expanding a company’s global footprint. It transforms what has been a complex infrastructure problem into a simple managed service for enterprises and service providers. This approach delivers several key benefits:

• Simplification: Companies can leverage a single physical port to connect to multiple IXPs, reduce network complexity and minimize operational burden.
• Cost management: Remote peering follows a service-based model. Companies only pay for the bandwidth they consume, without incurring the cost of additional equipment, labor, and other expenses.
• Flexibility: Entering a new market becomes much faster, allowing internal teams to test demand and respond accordingly. Bandwidth can be scaled up or down as needed to support changing usage requirements.

A new connectivity roadmap

Physical network infrastructure is often too rigid for both enterprise companies and telecommunication service providers to manage independently as their global digital footprints continue to grow in size and complexity. They need the flexibility to expand globally without being halted by the logistical challenges of owning, installing, and maintaining hardware.

Remote peering bridges this gap between global reach and cost efficiency. It provides a fast, flexible way to scale business connectivity with the support of experienced networking partners.

By adopting a virtual networking model, organizations can focus on boosting performance, accessing new revenue streams, and serving dynamic markets worldwide.