How to Create a Custom VPC in AWS: Step by Step Guide
Last Updated :
21 Mar, 2025
Creating a Virtual Private Cloud (VPC) in Amazon Web Services (AWS) allows you to establish a secure and isolated network for your cloud resources. It enables you to configure networking rules, IP addresses, subnets, and more, providing you with complete control over how your applications, databases, and other resources communicate.
In this guide, we’ll walk you through how to create your own custom VPC in AWS, ensuring it meets your business needs and security requirements.
What is VPC in AWS?
A Virtual Private Cloud (VPC) is a logically isolated section of the AWS cloud where you can launch AWS resources in a virtual network. You can control aspects such as the IP address range, subnet configuration, route tables, and network gateways. This provides a secure and flexible environment that mimics a traditional on-premises data center but with the added benefits of cloud scalability, cost-efficiency, and enhanced security.
Why Should you Create your Own VPC in AWS?
Creating your own custom VPC in AWS offers several key advantages:
- Complete Control: You get full control over your network infrastructure, enabling you to configure your IP address range, subnets, routing, and network gateways to suit your application needs.
- Security: By isolating your resources within a VPC, you can control access using security groups, network ACLs, and VPNs, preventing unauthorized access.
- Scalability: AWS VPC allows you to scale your resources easily as your business grows, with the flexibility to add more subnets, increase IP ranges, and configure multiple availability zones.
- Connectivity Options: You can integrate your VPC with AWS services like Direct Connect, or securely connect to on-premises infrastructure via VPN(Virtual Private Network).
VPC vs. Traditional Private Cloud
The following table shows a comparison between VPC and Traditional Private Cloud:
Feature | AWS VPC | Traditional Private Cloud |
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Scalability | Easily scalable | Limited to on-premises capacity |
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Security | IAM, Security Groups, Network ACLs | Requires firewalls and VPNs |
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Cost | Pay-as-you-go | High upfront infrastructure cost |
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Connectivity | AWS services, VPN, Direct Connect | Limited external access |
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Best Practices for Creating a VPC
The following are some best practices for creating a VPC:
1. Implement Encryption
We can use encryption for sensitive data. This includes encrypting using SSL/TLS for communication and possibly implementing encryption mechanisms within our application.
2. Use Multiple Availability Zones
We can use multiple subnets across the availability zone. This will help us in the protection of our application from downtime and failures.
3. Regularly Backup
Performing regular backups for sensitive data that is stored in our VPC. This will ensure the data can be restored in case of deletion, corruption, or other issues.
4. Limit Public Access
Keep databases and internal applications in private subnets with no direct internet exposure.
5. Use Security Groups & Network ACLs
Restrict inbound and outbound traffic to only what’s necessary.
How To Create Custom VPC in AWS: Easy Steps
Follow these steps to set up a custom VPC for your AWS environment:
Step 1: Log into Your AWS Account
Login into to AWS account dashboard. To know how to create an AWS account free tier refer to Amazon Web Services (AWS) – Free Tier Account Set up.
Step 2: Access the VPC Dashboard
From the AWS Management Console, type VPC into the search bar and select VPC under the Networking & Content Delivery section.

Step 3: Create a New VPC
In the VPC dashboard, on the left-hand panel, click on Your VPCs and then click the Create VPC button.

Step 4: Select the following options for your custom VPC :
- For Resources to create, choose VPC and more
- For Name tag auto-generation, enter any name you like for example: "Nitin-vpc"
- IPv4 CIDR Block: Enter an IP range for your VPC. A common CIDR block for a VPC is 10.0.0.0/16, which provides 65,536 IP addresses.

- For Availability Zones (AZs), choose 2.
- For the Number of public subnets, choose 2.
- For the Number of private subnets, choose 2.

Step 5: VPC Diagram Preview
AWS will show a diagram preview of your VPC configuration. Review it to ensure that your subnets, CIDR blocks, and settings align with your requirements.
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Step 6: Create VPC
- After configuring all the options, click Create VPC. AWS will begin creating your custom VPC, which might take a minute or two.
Step 7: Review Your VPC
- Once the creation process is complete, click on View VPC to review your settings and make any necessary changes.

Conclusion
Setting up a Custom VPC in AWS gives businesses a secure and flexible network to run their applications and store data with complete control. By following best practices like encryption, multi-AZ deployment, restricted access, and regular backups, you can protect your resources and ensure smooth performance.
With AWS Direct Connect and VPN, you can also integrate your VPC with on-premises infrastructure, making it a great choice for businesses looking for a secure and efficient cloud solution.