The Internet is a global system of interconnected networks – essentially a network made up of many other networks. An Internet Exchange point or IXP is a set of physical infrastructure (routing and switching equipment, etc.) where Internet Service Providers and Content Providers interconnect in order for Internet traffic to be exchanged between themselves and others who are connected to the exchange. The primary role is to keep local Internet traffic within local infrastructure.
The main benefits include lower costs, reduced latency and good bandwidth due to avoiding the data routing through upstream Internet Providers.