Data width refers to the amount of data that can be processed or transmitted simultaneously in a computer system. It is typically measured in bits, with common widths being 8, 16, 32, or 64 bits. A wider data width allows for more information to be handled at once, which can improve performance in tasks such as calculations and data transfers. In digital systems, data width is crucial for determining how much memory can be accessed and how efficiently data can be processed. For example, a 32-bit processor can handle data in chunks of 32 bits, while a 64-bit processor can manage larger data sets, enhancing overall system capabilities.