Megaport Limited has acquired Extreme IX, the largest internet exchange (IX) in India, providing the Australia-based Network as a Service (NaaS) provider with control over a significant layer of the country’s internet infrastructure.
Megaport offers on-demand, software-defined network services across data centers and cloud platforms globally. This acquisition positions Megaport within the neutral interconnection points where Indian internet service providers (ISPs), content platforms, and cloud companies exchange traffic. While day-to-day operations will remain unchanged, the acquisition will reshape how this layer connects to global cloud and network ecosystems.
Extreme IX carries the highest IX traffic in India, exceeding four terabits per second, and connects more than 400 networks across seven cities and 49 locations. As a result, Megaport will acquire infrastructure in major cities such as Mumbai, Delhi, Kolkata, Hyderabad, Chennai, Bengaluru, and Pune, along with an operational team in India.
Moving forward, Megaport plans to leverage Extreme IX to expand its global software-defined network.
### What This Deal Changes, And What It Does Not
While the acquisition changes ownership, it does not immediately alter the way the exchange operates. Extreme IX will continue to function as a carrier-neutral and data-center-neutral exchange. Existing services, ports, and peering relationships will remain intact, and customers will continue to work with the same Extreme IX team for support. Megaport will introduce new services gradually, ensuring prior communication of any changes.
The acquisition will initiate a technical and commercial integration, with plans to connect Extreme IX’s network into Megaport’s global software-defined network. As integration progresses, Megaport expects to offer services including cloud connectivity, data-center interconnects, virtual edge, and compute capabilities.
Overall, this integration expands Megaport’s operational footprint to 27 countries and strengthens its presence in the Asia Pacific region.
### Why Internet Exchanges Matter For India’s Internet Infrastructure
Internet exchanges determine how traffic flows within a country, enabling ISPs, content platforms, and cloud companies to exchange data more efficiently than through longer and more expensive international transit routes. By localizing traffic, exchanges reduce latency, cut connectivity costs, and enhance network resilience, which is especially crucial for smaller and regional ISPs seeking to deliver faster speeds without incurring high upstream bandwidth costs.
Private exchanges like Extreme IX have grown alongside the National Internet Exchange of India (NIXI), influencing domestic traffic flows and supporting broadband expansion throughout Indian cities.
Extreme IX has emphasized its role as infrastructure rather than a service provider. This distinction is significant for the scalability of India’s internet and highlights the importance of ownership transfers and control over infrastructure.
### Why A Global NaaS Company Wants An Internet Exchange In India
Megaport operates at the intersection of cloud infrastructure and cross-border connectivity. As a NaaS provider, it offers software-controlled connectivity that enables enterprises and networks to create, modify, and scale connections between data centers and cloud providers without lengthy provisioning cycles.
Acquiring Extreme IX allows Megaport to establish a presence within India’s domestic interconnection layer. This positioning places Megaport nearer to the points where ISPs, content platforms, and cloud networks exchange traffic locally.
Although Extreme IX will maintain its neutral exchange status in the short term, ownership at this layer may influence network connections in the future. Structural questions arise about how ownership affects integration, automation, and the services surrounding a neutral IX, especially as IXs become part of larger NaaS platforms.
### Regulatory Scrutiny Around Internet Exchanges
The Telecom Regulatory Authority of India (TRAI) has recommended that internet exchange points (IXPs) fall under network authorization frameworks within the Telecommunication Act, 2023. Both Extreme IX and NIXI have opposed this recommendation, arguing that IXPs serve as neutral infrastructure platforms and do not offer end-to-end telecom services.
Extreme IX has also challenged the requirement for ISP licensing in the Delhi High Court, with regulatory decisions on IX classifications now applicable to an exchange that is part of a global NaaS platform.
Future regulatory choices will significantly impact how global network services integrate into India’s internet infrastructure.
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