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In this article you’ll learn how to add encryption and protect data in transit when using Azure ExpressRoute. ExpressRoute provides private, dedicated connectivity between your on‑premises network and Microsoft Azure, but that private circuit does not encrypt payloads by default. If your security or compliance requirements mandate encryption in transit, you must layer encryption on top of or at the physical link.
ExpressRoute gives private connectivity but does not automatically encrypt traffic. If your policies require encryption in transit, enable MACsec on the physical interconnect (when supported) or deploy customer‑managed IPsec to secure end‑to‑end traffic.
A diagram showing an on‑premises network connected to a virtual hub via ExpressRoute private peering between an On‑Prem WAN Edge and an ExpressRoute gateway. A caption states ExpressRoute traffic is not encrypted by default because it traverses private circuits, not the public internet.
Two common methods to add encryption over ExpressRoute:
  • MACsec — encrypt the physical (Layer 2) link between your on‑premises WAN edge and Microsoft’s edge.
  • Customer‑managed IPsec — place an IPsec tunnel over the ExpressRoute private circuit for end‑to‑end encryption under your control.

MACsec (Media Access Control Security)

MACsec is a Layer 2 protocol that provides hop‑by‑hop encryption on the physical link between your WAN/edge device and Microsoft Edge. It protects against a physical tap on the cable, ensuring frames traversing the interconnect are encrypted. Key points:
  • MACsec encrypts all Layer 2 traffic on the physical interconnect.
  • It must be supported and enabled on your WAN edge device, the carrier, and on Microsoft’s side at the peering/interconnect location.
  • Use MACsec when regulations or your security posture require encryption of the physical link itself (common in finance, government, and healthcare).
Operational considerations:
  • Check hardware compatibility and firmware versions for MACsec support on routers/switches.
  • Verify your ExpressRoute circuit and carrier support MACsec at your chosen exchange/colocation point.
  • MACsec is transparent to higher‑level routing and does not change IP addressing or routing behavior.
A diagram titled "Media Access Control Security (MACsec) Support" showing an on-premises network connected to a virtual hub via an ExpressRoute private peering link, with MACsec-enabled On-Prem WAN Edge and ExpressRoute GW icons. The caption explains you can enable MACsec at Layer 2 to encrypt the physical link between your edge and Microsoft.

Customer-side IPsec (End-to-end encryption)

If you need encryption from an on‑premises endpoint all the way to a specific Azure resource, deploy a customer‑managed IPsec tunnel and route it over the ExpressRoute circuit. This creates an encrypted overlay (IPsec) that runs on top of the private circuit, delivering end‑to‑end confidentiality and integrity. Key points:
  • IPsec provides end‑to‑end encryption between two IP endpoints (for example, on‑premises gateway and Azure VPN gateway or an NVA in Azure).
  • You can run IPsec over the ExpressRoute private peering; the underlying path remains private while payloads are encrypted.
  • Customer‑managed IPsec gives you control over algorithms, key management, tunnel endpoints, and lifetime, but introduces CPU overhead and potential additional latency.
Operational considerations:
  • Decide where the tunnel terminates: Azure VPN Gateway, a VPN-capable virtual appliance (NVA), or a hybrid design.
  • Ensure routing works as expected (BGP, UDRs) so encrypted traffic traverses the ExpressRoute circuit.
  • Monitor throughput and CPU usage on the on‑premises device and the Azure tunnel endpoint; IPsec encryption increases resource use.
A network diagram titled "Customer-Side Encryption" showing an on-premises network (On-Prem VPN and WAN edge) connected via ExpressRoute private peering to a Virtual Hub (ExpressRoute GW and VPN GW). It illustrates sending an IPsec-encrypted VPN connection over ExpressRoute for additional security.

MACsec vs Customer‑side IPsec — Comparison

FeatureMACsec (Layer 2)Customer‑side IPsec (Layer 3)
Encryption scopePhysical link between edgesEnd‑to‑end between IP endpoints
Typical use caseProtect the physical interconnect (regulatory, anti‑tamper)Protect application payloads across the private circuit
Hardware dependencyRequires MACsec‑capable devices and provider supportRequires IPsec-capable gateway/NVA; vendor agnostic
Control over keys/ciphersKeys typically managed by carrier/MS collaborationFull customer control of keys, ciphers, and tunnel endpoints
Performance impactMinimal (hardware offload)CPU/latency overhead depending on endpoint resources
Implementation complexityCarrier + vendor coordinationConfiguration at customer gateways and Azure tunnel endpoints

When to choose which option

  • Choose MACsec when:
    • Your compliance requirements mandate protection of the physical link.
    • You want transparent encryption with minimal impact on IP routing.
    • Your carrier and on‑premises hardware support MACsec.
  • Choose customer‑managed IPsec when:
    • You need full end‑to‑end encryption between application endpoints.
    • You require control over cipher suites, key rotation, and termination points.
    • You accept the tradeoffs of additional latency and computational overhead.
MACsec availability depends on your router/switch hardware, the carrier, and the interconnect location. Verify support with your network equipment vendor and ExpressRoute provider before planning. Customer‑managed IPsec introduces CPU and latency overhead — test performance impact on your workloads.

Implementation checklist

  • Verify ExpressRoute circuit type and interconnect location support for MACsec.
  • Confirm your WAN edge (router/switch) firmware and models are MACsec compatible.
  • Decide tunnel termination for IPsec (Azure VPN Gateway vs NVA) and validate routing (BGP, UDR).
  • Plan key management and rotation for IPsec tunnels.
  • Benchmark throughput and latency with encryption enabled to confirm SLA/requirements.
  • Coordinate with carrier and Microsoft support for MACsec activation and testing if applicable.
Summary
  • ExpressRoute provides private connectivity but is not encrypted by default.
  • Use MACsec to encrypt the physical interconnect when supported.
  • Use customer‑managed IPsec to achieve end‑to‑end encryption and full control over keys and ciphers.
  • Consider combining both approaches for a layered security model that meets performance and compliance needs.