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To create a placement group, perform the following procedure:

1. Navigate to the EC2 Management Console.

2. Select NETWORK & SECURITY > Placement Groups.
   The Placement Groups page displays.

3. Click Create Placement Groups.
   The Create Placement Groups window displays.
4. Enter a name for the placement group.
5. Select a strategy for the placement group:
   1. Cluster placement group: this clusters instances in a single Availability Zone to provide low latency and higher network throughput. 
   2. Spread placement group: this spreads instances across distinct hardware to improve redundancy.
6. Click Create.

The following figure depicts the Create Placement Group page.