A method and an apparatus for allocating a server to a terminal are provided. The method includes receiving an Internet protocol (IP) packet with a domain name system (DNS) query from a terminal, including terminal location information in the IP packet, transmitting the IP packet to a DNS server, receiving, from the DNS server, a response IP packet location information of a proximity server, the proximity server being located within a certain distance from the terminal, and transmitting the response IP packet to the terminal.