A system and method are described for storing program code and data within an application hosting center. For example, one embodiment of a computer-implemented method comprises: subdividing program code and/or data used to execute an online application into a first type and a second type; storing program code and data of the first type in a first type of memory, the first type of memory providing relatively low latency memory access; storing program code and data of the second type in a second type of memory, the second type of memory providing relatively higher latency memory access compared to the first type of memory; retrieving program code and data from the first memory and the second memory in response to a client request to execute an online application; and transmitting a streaming interactive video stream representing images generated by the application to the client.