Running a Solana validator on AWS might seem like the easy path, enterprise-grade security, managed services, and global infrastructure at your fingertips. But beneath the surface lurks a profit-crushing reality: AWS egress fees can consume your entire validator income and then some.

This comprehensive analysis breaks down the true cost of AWS egress fees for Solana validators, compares cloud versus bare-metal economics, and reveals why many operators are making the switch to dedicated infrastructure.

The Hidden Cost: AWS Egress Fees Explained

AWS charges for data leaving their network, and Solana validators generate substantial outbound traffic. Here’s the breakdown:

Internet Data Out: $0.09 per GB after the first 100 GB free tier
Cross-AZ Transfers: $0.01 per GB within the same region
NAT Gateway Fees: $0.045 per GB plus $0.045 per hour
Elastic IP (IPv4) Fees: $3-4 per month per IP address
S3 Snapshot Downloads: Variable based on frequency and size

For context, a typical Solana validator can push 5-20 TB of outbound data monthly under normal conditions. During high-load scenarios or when serving as a leader more frequently, this can spike to 60+ TB per month.

Cost Breakdown: The Numbers Don’t Lie

AWS Single-AZ Deployment

Here’s what you can expect to pay monthly for a Single-AZ setup on AWS:

• EC2 m6a.16xlarge instance: ~$1,200
• EBS storage (2TB NVMe): ~$400
• Internet data out (20 TB): ~$1,800
• Elastic IP: $4
• Total: ~$3,404 per month

AWS Multi-AZ High-Availability Setup

A Multi-AZ high-availability setup on AWS comes with higher costs. Here’s the breakdown:

• 2x EC2 instances: ~$2,400
• 2x EBS storage: ~$800
• NAT Gateway fees (20 TB): ~$900
• Cross-AZ transfers: ~$200
• Internet data out: ~$1,800
• Total: ~$6,100 per month

Bare-Metal Server Comparison

In contrast, bare-metal servers are far more affordable. Monthly costs typically include:

• High-performance AMD EPYC server: $300-600
• 20TB bandwidth included or <$5/TB overage
• Total: ~$300-700 per month

The difference is staggering: AWS costs can be 5-10x higher than equivalent bare-metal infrastructure.

Scenario Comparison: ROI Analysis

Revenue Model for Solana Validators

Solana validators have multiple revenue streams that contribute to their profitability. Here’s how they typically earn:

• Vote Credits (Inflation Rewards): Validators earn approximately ~6% APY on delegated stake through inflation rewards.
• Stake Commission: Validators collect a percentage of rewards from delegators, typically ranging from 5-10%.
• Block Rewards: Validators also earn transaction fees, though these are currently minimal.
• Jito MEV Tips: Optimized validators can receive additional income through Jito MEV tips.

Break-Even Analysis

To determine profitability, let’s compare the break-even requirements for validators using AWS infrastructure versus bare-metal servers. Here’s how the costs and required delegated stake break down:

AWS Single-AZ Scenario:

• Monthly costs are approximately $3,404.
• Validators need ~284,000 SOL in delegated stake at a 5% commission to break even.
• At a $20 SOL price, this equates to $5.68 million in required delegated stake.

Bare-Metal Scenario:

• Monthly costs are significantly lower at $500.
• Validators need only ~42,000 SOL in delegated stake at a 5% commission to break even.
• At a $20 SOL price, this equates to $840,000 in required delegated stake.

Overall, the AWS deployment requires 7x more delegated stake to achieve the same profitability as a bare-metal setup.

Why Bare-Metal Infrastructure Wins

Performance Advantages

Bare-metal infrastructure delivers superior performance compared to cloud-based alternatives. Here’s why:

• No virtualization overhead, meaning resources are fully dedicated to your operations.
• Dedicated CPU and memory resources ensure consistent performance.
• Direct hardware control allows for advanced optimization.
• Lower latency networking improves overall system efficiency.

Cost Predictability

Bare-metal servers also offer more predictable costs, a crucial factor for validators. The benefits include:

• Fixed monthly costs that remain stable regardless of traffic.
• Included bandwidth allowances, often exceeding 100 TB, which reduce unexpected expenses.
• No surprise billing due to traffic spikes, ensuring budget stability.

Operational Control

Operating on bare-metal servers provides unmatched control over your infrastructure. Here’s what you gain:

• Full root access and the ability to fully customize your setup.
• Custom kernel configurations tailored to your specific needs.
• Direct IPMI access for remote management and troubleshooting.

The Path Forward

The economics are clear: AWS egress fees create a significant barrier to Solana validator profitability. While cloud infrastructure offers convenience, the cost premium can consume 60-80% of validator rewards.

For serious validator operators, bare-metal infrastructure delivers superior performance at a fraction of the cost. With providers offering enterprise-grade security, global deployment options, and 24/7 support, the operational advantages of cloud are no longer unique to AWS.

Take Action on Your Infrastructure

Consider evaluating dedicated server providers that understand blockchain infrastructure requirements. Look for:

• High-performance AMD EPYC processors
• Abundant NVMe storage
• Generous bandwidth allocations
• Global data center presence
• Expert 24/7 support

Ready to optimize your Solana validator infrastructure costs without sacrificing performance? Explore Hivelocity’s bare metal solutions designed specifically for blockchain validators. Our dedicated servers eliminate egress fee surprises while delivering the high-performance infrastructure Solana demands.