Historically: ISPs would directly connect using physical fiber (direct-circuit peering)
Typically, would require a local provider to provide fiber within a metro area
Required construction; expensive and slow
Sometimes still happens, but only if small number of connections in a single metro area
Now: carrier hotels / private peerings
Specific buildings where ISPs, cloud providers, CDNs, and companies can peer with each other (carrier hotels)
Original locations: landing points of underseas cables, but have now increased
Most big cities
Typically owned by a third party (e.g. Equinix)
“Rent” (both physical location and fiber) can be high
In Europe: most of these IXPs are run by nonprofits, operate more cooperatively
Support private peerings: two ISPs directly connect racks together (cross connect/XC)
Provide shared interconnect (switching fabric) between ISPs
Allows ISPs to BGP peer with many organizations through a single link (Public Peering)
Still need to negotiate BGP peering with others on the exchange
Note: more common in Europe than US
Multilateral Peering Exchanges: allows those with open policies to all BGP peer with a single entity to both advertise routes and collect routes from others on the exchange
Saves ISPs from having to negotiate contracts with thousands of other ISPs
Can provide a peering policy; carrier hotel owner will take care of routing and billing for you