Everyone in Silicon Valley is talking about this and the media has painted a picture of criminal undertaking by the NSA. A lot of this is just speculation that has been blown out of proportion. The only way the NSA could compromise private data centers without placing moles in their respective ops teams, is to sniff the traffic on the private DC to DC lines leased by the companies. Assuming they did this by overpowering the ISPs, they are still left with a ton of TCP/UDP packets which they need to reconstruct, decipher and schematize. Although DC to DC traffic is typically not encrypted, it is often compressed or transmitted as binary streams. There is absolutely no way they NSA would be able to make sense of the data without reverse engineering the innumerable communication protocols used and then using that protocol to decipher the packets. It is a lot more feasible to force a company to hand over data on specific users than it is to piece together user data using this packet sniffing technique. If the NSA really is wiretapping DC-DC communication, it's not because they are trying to build profiles on individuals. It's likely that they are using this raw data for keyword lookups. And, although I question its effectiveness, that is a level of surveillance I'm comfortable with.
