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We are hosting several websites on one of our servers, and wondering if because they are on the same subnet that they have been somehow penalized.

We are not inter-linking between websites.

However in an attempt to have everything hosted in AWS, we will have some sites that we do want to be interlinked.

If the sites resided on the same subnet, this could be bad. However, with AWS, we can allocate multiple elastic IP addresses that do reside on different subnets.

How does Google deal with this?

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This fellow says here that there is no penalty on Google SEO just for sharing an IP with another site.

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