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The data placement problem arises in the design and operation of Content Delivery Networks-computer systems used to efficiently distribute Internet traffic to the users by replicating data objects (media files, applications, database queries, etc.) and caching them at multiple locations in the network. This allows not only to reduce the processing load on the server hardware, but also helps eliminating transmission network congestion. Currently all major Internet content providers entrust their offered services to such systems. In this paper we formulate the data placement problem as quadratic binary programming problem, taking into account server processing time, storage capacity and communication bandwidth. Two decomposition-based solution approaches are proposed: the Lagrangian relaxation and randomized rounding. Computational experiments are conducted in order to evaluate and compare the performance of presented algorithms. [ABSTRACT FROM AUTHOR]