A data room is a secure physical or virtual space where a company can store and share sensitive or confidential information with other parties. This is often used in the context of mergers, acquisitions, or other business transactions, as a way for the parties involved to securely share and review important documents and information.

For example, a company that is considering being acquired by another company might set up a data room to provide the potential acquirer with access to its financial statements, contracts, and other important documents. The data room would be securely accessed by the potential acquirer, and would allow them to review the documents and information in a controlled and secure environment. This helps to ensure that sensitive information is not shared outside of the parties involved in the transaction.