Comment by immibis

Well, they have to pay for the amortized equipment cost. Which, yes, is much less than you think. The big 3 clouds have set their prices in an age when services were much more expensive to provide, and they make a big deal out of the fact they've never raised their prices - but they rarely lower them, either. Now they have insane profit margins.

The invisible hand of the free market has come to fix that, *but you have to opt into the hand by shopping around.* If you don't, you don't get its benefits! You have to willingly take the choice to move to cheaper providers instead of overpriced ones.

Hetzner Cloud: $1/TB (20TB free) Digital Ocean: $10/TB (few TB free depending on server size) AWS: $90/TB (0.1TB free, used to be 0.001TB free) Netlify: $550/TB (0.1TB or 1TB free)

If you move up from $5/month VPSes, to real dedicated servers, you are now spending a lot more money and therefore you get more free perks. A huge number of providers exist that will give you unlimited or unlimited† bandwidth depending on how much you spend. Renting a powerful server with unlimited 1Gbps should cost a few hundred to several hundred dollars per month, and a powerful server with unlimited 10Gbps (i.e. 3000TB/month) should cost a few thousand dollars per month. You can even get some with 100Gbps (for tens of thousands).

Also consider asking your local ISPs and datacenters. If you live in a central area, you can probably get a comparable connection to a nearby datacenter if not straight to your office, for a comparable price. Data center connections are their bread and butter and they should be able to give you a quote quite rapidly; to your office will be a more custom thing.

Recently I got a quote for AMS-IX peering in Berlin, i.e. a peering in Amsterdam plus a link from Amsterdam to Berlin, about a 600km distance. That would cost 950 euros per month. If 1Gbps, it would cost 300 euros per month. Even though it's not really got anything to do with internet access (transit), I include this number to give some indication of the "true" cost of "raw" bandwidth.