Sigh. Those are called instance servers in MMO's yes.
But all it does is host the multiplayer part. Sync enemy NPC and player locations for everyone in the instance, sync combat logs and status, handle instance chat, etc. NOT content aka Assets!
It doesn't stream any assets! Those are all loaded on the Client itself!
A ton of People would be screaming hell on Earth, if they constantly had to download/stream all assets to their client, blowing away their bandwith.
The game Client would otherwise be nothing more than a launcher of a couple MB. That's it. Not 20GB to 40GB in size. /sigh
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