Installing SharePoint results in the creation of a number of databases in the SQL Server, as follows:
• Configuration database (SharePoint 2010 Foundation)—An important database generally called SharePoint_Config. This database stores and manages data associated to all the SharePoint databases in the farm, IIS websites, trusted solutions, WSP packages, site templates, and web application and farm settings. This database is generally small in size.
By the Way
The configuration database should reside on the same SQL server instance as the Central Administration database because they have a strong dependency on each other.
• Central administration content database (SharePoint 2010 Foundation)—The content database ...