Currently our .NET application constructs XML data in memory that we persist to a SQL Server database. The XElement object is converted to a string using ToString() and then
Besides possibly compressing the string itself (perhaps using LBushkin's Base64 method above), you probably want to start with making sure you kill all the whitespace. The default XElement.ToString() method saves the element with "indenting". You need to use the ToString(SaveOptions options) method (using SaveOptions.DisableFormatting) if you want to make sure you've just got the tags and data.