DigitalOcean has recently launched VPC peering GA, enabling private network connectivity between VPC Networks. This release unlocks major customer requests including the ability to connect VPCs within and across data centers, VPC Native DigitalOcean Kubernetes, and VPC peering for DBaaS services such as MySQL, Postgres, Redis, MongoDB, and Vector DB. The VPC peering implementation leverages existing VPC building blocks and introduces a new Transit Gateway architecture that enables routing between different VPC networks. This architecture is built on commodity x86 hosts with routing functionality developed using XDP and eBPF constructs for fast packet processing. The Transit Gateway system consists of a bare metal x86 host, gatewayd, VXLAN router eBPF program, and uses a pull-based control plane approach to manage the gateway configuration. It provides a robust foundation for private network connectivity while maintaining security and performance.