In terms of network setup, what is a benefit of placing EC2 instances in private subnets?

Placing EC2 instances in private subnets significantly reduces exposure to threats from the public internet. By situating instances in a private subnet, these resources are shielded from direct internet access, which minimizes the attack surface available to potential hackers and malicious entities. This configuration enhances security by ensuring that only designated resources, such as load balancers or bastion hosts in public subnets, can interact with the private instances. The combination of network access control lists (ACLs), security groups, and routing rules can further bolster security by controlling the flow of traffic and restricting unwanted access.

While enhancing data encryption is indeed important for security, encryption typically applies to data in transit regardless of the network configuration. Similarly, direct access to the internet is not a characteristic of private subnets, as they are specifically designed to limit such access. Though performance can be improved under certain circumstances, that is not a primary benefit directly associated with the choice of private subnets. The focus of private subnets is primarily on security through reduced exposure to public threats, making the answer valid in the context of network setup and security measures.