For most practical applications, the storage of your website will be on the actual web server that your website will run on. This makes the actual application and procedure behind running websites much easier. This will be the case almost every time for shared hosting accounts. The reason behind this is that accounts need to be setup quickly, in most cases automatically, for shared hosting accounts. There are some advanced hosting environments that will require the use of files on a different server.
Website storage, much like bandwidth, is measure in gigabytes. This is actually a much newer trend, as megabytes were the predominant unit of measure for storage for quite a long time in web hosting environments. Typically, you will actually receive more storage space in a shared hosting account, than in a much more expensive dedicated hosting solution. The reason behind this is purely marketing. Some shared accounts will offer 2000gb of storage space. While this may sound great, the actuality behind this is that a web server will not have room for enough hard drives to have hundreds of accounts that all get 2000gb of storage. Most websites will only use 50mb of storage, so hosting providers advertise the excess space as a ploy or ‘cherry on top’. In a more realistic dedicated hosting solution, where one customer leases an entire server, you will generally see storage ranges from 200gb to 1tb; the physical limit of the server.