EC2 placement groups are a logical grouping of Amazon Elastic Compute Cloud (EC2) instances within a single availability zone. They allow for low-latency network performance between instances and enable the placement of instances in a physically isolated section of an availability zone, providing a higher level of isolation from other instances and failures. Placement groups are recommended for applications that require high performance network traffic, such as high-performance computing, video encoding, and scientific modeling. When launching a new EC2 instance AWS automatically make sure that the instances are placed interdependently in hardware to avoid any co-related failure Users can setup 3 different placement groups Cluster, Partition & Spread Cluster : Places the instances closely in a single availability zone Partition: Places the instances in logical partitions but not share the hardware Spread: Places the instances strictly in distinct hardware