It's where data in memory goes when you run out of RAM. It's much slower than RAM, but reduces the need to have shitloads of RAM on hand.
swap space n.
Storage space, especially temporary storage space used during a move or reconfiguration. "I'm just using that corner of the machine room for swap space."
--The Jargon File version 4.3.1, ed. ESR, autonoded by rescdsk.
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