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It depends on many parameters. Data from your users is stored locally. But then you have federation: every time one of your users subscribes to a community of another instance, your instance will cache it locally. You can manage how much cache it uses, but the cache is there of a reason.
It depends on many parameters. Data from your users is stored locally. But then you have federation: every time one of your users subscribes to a community of another instance, your instance will cache it locally. You can manage how much cache it uses, but the cache is there of a reason.