I guess it does store data for some time on-device. The gps.conf on my system mentions this:
XTRA_SERVER_1=http://xtrapath1.izatcloud.net/xtra2.bin
XTRA_SERVER_2=http://xtrapath2.izatcloud.net/xtra2.bin
XTRA_SERVER_3=http://xtrapath3.izatcloud.net/xtra2.bin
From their site:
The Qualcomm Location XTRA Service generates and provides accurate Satellite positions for extended periods of time to a mobile device. This assistance data is provided in compact form and allows the mobile device to perform positioning for an extended period of time (up to seven days). The assistance data files are made available to a Data Distribution Network for global distribution.
I don’t know if this is actually used.