By default, cache is created with compression disabled. However, compression can be enabled as follows:
Using NCache Manager
Click the cache name in Cache Explorer to open cache settings.
Go to the Options tab.
Check the Enable Compression checkbox.
Change the Threshold size as per your requirement.
Right click on the cache name in Cache Explorer and selecting Apply Configuration option.
You can enable/disable data compression option for a cache through config.ncconf as follows:
<compression enabled="true" threshold="500kb"/>