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Data Management

Data Compression

Definition updated April 2026

What is data compression?

Data compression encodes data using fewer bits than the original representation, reducing storage space and transmission bandwidth. Compression is either lossless (the original can be perfectly reconstructed - required for structured data) or lossy (some precision is sacrificed for greater reduction - acceptable for images or audio).

In data pipelines, compression dramatically reduces storage costs and transfer times for large datasets. Parquet applies columnar compression automatically; CSV files are commonly compressed with gzip or zstandard. A 100MB CSV file might compress to 10-20MB depending on data characteristics and field repetition.

When working with APIs, HTTP compression (gzip or Brotli) reduces response size transparently - most HTTP clients decompress automatically. For datasets, always choose a compressed format like gzip-compressed CSV or Parquet for anything larger than a few megabytes to reduce storage costs and delivery time.

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