Techniques are described herein for a Floating Layer 3 Outside (L3Out) mechanism that enables an Application Centric Infrastructure (ACI) datacenter fabric to peer with Virtual Routers that can move across hypervisors. This may be performed without losing connectivity in protocol sessions, almost zero packet loss, and no extra configuration. These techniques save hardware resources with respect to Internet Protocol (IP) address and policy Content Addressable Memory (CAM) usage with no extra provisioning on the ACI
