A cluster is a disk-storage unit consisting of a fixed number of sectors that the operating system uses to read or write information. Even for a 1-byte file, one cluster must still be allocated in a FAT file system. In NTFS, if a file is this small, it can be stored in the MFT record itself without using additional clusters. When a file grows beyond the cluster boundary, another cluster is allocated. It means that the bigger the cluster size, the more disk space is wasted, however, the performance is better.
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