What is Collations in SQL Server ?

Collations control physical storage of characters strings in SQL Server. Collation specifies bit patterns that represent each character and the rules by which characters are sorted and compared.

Collation specifies three properties:
  1. Sort order to use for Unicode data types ( nchar , nvarchar and ntext )
  2. Sort order to use for non-Unicode data types ( char , varchar and text )
  3. Code page to store non-Unicode character data

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