Megaport, one of the most prominent names in Network as a Service (NaaS) on a global scale, has decided to shorten timelines—and risks—in its expansion across Asia-Pacific with a surgical move: the acquisition of Extreme IX, India’s leading Internet Exchange (IX) operator. Announced on December 18, 2025, the deal places Megaport within seven key nodes in the country and opens the door to a rapidly growing market in data centers, connectivity, and digital consumption.
The purchase isn’t just a simple “market entry.” It means directly tapping into the traffic core: the exchange points where networks, providers, and major platforms connect to improve latencies, reduce transit costs, and boost resilience. At a time when interconnection demand no longer depends solely on the cloud, but also on AI, edge computing, and distributed architectures, controlling (or at least integrating) that layer provides a real competitive advantage.
Seven cities, one goal: being where latency originates
According to the announcement, Extreme IX’s footprint spans seven major Indian cities: Delhi, Kolkata, Hyderabad, Chennai, Bengaluru, Mumbai, and Pune. Together, the network connects over 40 data centers and serves more than 400 customers, representing an immediate increase in local reach without the typical one-on-one negotiations with operators, colocation providers, and regional ecosystems.
Meanwhile, Megaport reinforces its “global platform” narrative by integrating Extreme IX into its Software-Defined Network (SDN). The idea: India entry should not be an isolated piece, but a natural extension of its international mesh, allowing multinational clients to deploy private connectivity and interconnection routes using the same operational model they already utilize in other markets.
Why an IX matters more in 2025 than five years ago
To understand the significance of this move, it’s essential to see how traffic patterns have evolved. IXs are no longer just “places where networks handshake”; they are strategic points for optimizing latency-sensitive applications: financial services, streaming, gaming, enterprise SaaS… and increasingly, flows related to AI inference and data pipelines.
India also adds a differentiating factor: scale. When a market combines user growth, accelerated digitization, and data center deployment, interconnection shifts from being a “nice-to-have” to critical infrastructure. For Megaport, entering with an already operational base—and with local team members—reduces maturation time and allows a quicker focus on product development and sales.
Gradual integration and new services “on top” of the exchange
Megaport has indicated that Extreme IX’s network will be integrated into its global platform, with service deployment happening gradually “over the coming months.” The intended catalog includes cloud connectivity, data center interconnection, virtual edge, and computing services.
This point is significant because Megaport has been broadening its narrative beyond pure connectivity. The company had already announced moves toward combining network and compute as part of its strategy for high-performance applications and AI-related workloads. In this context, India would not just be a “new country” on the map, but a market where it can offer a more comprehensive layer: programmable network + access to local colocation ecosystems + private routes to cloud platforms.
The acquisition is also talent: a local team “ready to operate”
Another often underestimated factor in these operations is the human element. Megaport assures that the acquisition includes a local team experienced in operations, support, sales, finance, and leadership, facilitating rapid integration and sustained growth. In complex markets, having “people on the ground” can make the difference between a smooth deployment and friction-filled expansion.
In the words of Megaport CEO Michael Reid, the move aims to connect India’s “most reliable” network platform with their global SDN to expand reach, accelerate entry, and provide high-performance connectivity “seamlessly.” On the Extreme IX side, leadership has defended the acquisition as an opportunity to scale the platform through investment and product capacity on an international level.
A move that reconfigures the connectivity landscape in APAC
With this deal, Megaport consolidates its position in Asia-Pacific and accelerates a plan announced to be nearly three years ahead of schedule. More than just geographical expansion, it’s a strategic move to capture a key part of the value chain: the intersection point where networks, clients, data centers, and public clouds converge.
In an industry where the promise is “connect everything in minutes,” the real challenge is doing so where traffic grows fastest—using local agreements, resilience, and actual performance. India, given its size and momentum, is one of those critical places. And Megaport has just gained a preferred entry point.
Frequently Asked Questions
What is an Internet Exchange (IX), and why is it important for companies and cloud providers?
An IX is a point of interconnection where different networks exchange traffic directly. It typically improves latency, reduces transit costs, and increases resilience—crucial factors for cloud services, SaaS, and critical applications.
What changes for clients in India with Megaport’s arrival after acquiring Extreme IX?
The goal is to integrate the local network into Megaport’s global platform, enabling gradual service deployment such as cloud connectivity, data center interconnection, and virtual edge with a programmable network model.
Why does an acquisition accelerate market entry more than starting from scratch?
Because it provides an operational infrastructure, relationships with data centers and customers, and a local team familiar with the ecosystem, reducing friction in deployments and support.
What impact might this have on latency and private routes to the cloud from India?
By operating within Internet exchanges and connecting directly to data centers, it facilitates more direct access to networks and platforms, which can optimize latency and route stability (depending on final design and involved providers).
via: businesswire