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Cloud Egress Costs Explained: Why AWS Bills You $54,000 for Sending Data

📅 September 2025⏱️ 9 min read✍️ TCOIQ Team

What is Cloud Data Egress?

Data egress refers to data transferred out of a cloud provider — to the internet, to your on-premises systems, or to another cloud provider. Ingress (data going in) is typically free. Egress is not.

The Real Cost of Egress

ProviderEgress Price/GBFree Tier/MonthAnnual Cost (50TB/mo)
AWS$0.0901 GB~$54,000
Azure$0.0875 GB~$52,200
GCP$0.0801 GB~$48,000
OCI$0.008510,240 GB~$3,100
Alibaba$0.0781 GB~$46,800

Why is Egress So Expensive?

Cloud providers argue that egress costs reflect real infrastructure costs — bandwidth at data centre scale is genuinely expensive. Critics argue that high egress pricing is intentional vendor lock-in: the higher the cost to move your data out, the less likely you are to switch providers or use multi-cloud architectures.

Inter-Region Transfer Costs

Egress between regions within the same cloud is also charged: AWS inter-region: $0.02/GB. This means that a distributed application transferring 10TB/month between US-East and Singapore costs $200/month just in internal data transfer fees.

The OCI Egress Advantage

Oracle Cloud Infrastructure is dramatically different. OCI provides 10 TB of free egress per month — more than any other major cloud. Beyond 10TB, pricing is $0.0085/GB — 94% cheaper than AWS. For organisations with high data transfer volumes, this single difference can save tens of thousands annually.

Strategies to Reduce Egress Costs

  • Keep compute and storage in the same region: Don't process data in one region and store it in another
  • Use CDN for static content: CloudFront, Azure CDN and Fastly are all cheaper than direct egress
  • Compress data before transfer: Reduce the volume being transferred
  • Evaluate OCI for data-intensive workloads: The egress savings alone can dwarf other cost differences
  • Consider Direct Connect / ExpressRoute: Dedicated network connections often have lower effective egress costs for high-volume on-premises transfer
For any workload transferring more than 10TB per month, model OCI as a comparison — the egress savings alone can fund multiple other cloud services.

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