Hi, Sumit Jain.

Sorry for a late reply.

Thank you for showing interest in our plugin.

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In terms of where our plugin stores the data from tables, this depends on what type of dataTables you would make.

All the plugin's data / settings / and table informations will be stored on your WordPress Hosting server's database and our plugin is pulling it to be displayed in WordPress.

But, let's say if you connect a Google Spreadsheet to output data from it in our dataTable,

then the main data is stored in the Google Sheet - and our plugin is just displaying it, so it depends on what kind of tables you need.

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For example, let's start with Manual Tables.

When you make a new Manual Table in our plugin, this creates a new table in your WordPress SQL Database,

the table will have its own columns and rows,

so later on you can pull SQL Queries from it ( if needed).

Here is a screenshot example from my PHPMyAdmin, how a Manual Table looks when viewed from the Database:

You can create a Manual Table from scratch, add/remove columns, etc,

or you can import data from CSV/Excel/Google Sheet to make new Manual Tables.

These SQL based tables are editable in our plugin.

Later on, you can also update existing Manual Tables via uploading CSV/Excel/Google Sheets as well.

And you can make SQL Query based Tables from this data.

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Now, for other table types that are linked to existing Data Source, such as Excel,CSV, Google Sheets, JSON, PHP Array and others;

These tables which are linked to data source, 

they are not saved in the database like manual tables, but instead, their data is stored in database table wp_wpdatatables_rows. 

In regards of your question do you need to purchase a separate Database, you don't have to do that.

If you choose a good WordPress Hosting, they will provide you with a website and the Database you need,

so you won't need to purchase any additional / separate Database, because the WordPress Database is enough for our plugin to create and store its data there.

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If you need a Guide that can help to choose the right Hosting, here is one from wpBeginners website :

How to Choose the Best WordPress Hosting in 2023 (Compared).

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In regards to which version you need,  if you mean our licences,

it depends how many domains you need to activate the licence on.

We have annual ( subscription based) licences :

Every subscription-based license is set to renew every year, on the date of purchase, unless you unsubscribe through the store. If you unsubscribe, you will not be charged on the next renewal date, and after that date passes, you will still be able to use the plugin (the version you updated to last before the subscription expired), but you won't be able to receive new updates, and you won't have access to premium support.

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 and we have Lifetime licences ( one time payment, and then you own the licence as well as have our support without expiration/forever).

We recommend activating your licence on a live/production version of the Website,

but for testing the plugin on a dev/staging version, or on your local computer,

there you can manually install the plugin and you are not required to activate the licence on Staging/Dev sites or on local computer.

Each of our licences have an unlimited number of subdomains available - so if your Staging/Dev sites would be on same domain - you can activate all of them on the licence.

You will also be able to switch between Domains on the licence.

You can check all our licences here.

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And i just wanted to point out that you can try wpDataTables before purchasing

 on our sandbox Demo sites ( you can find links for the main plugin Demo,  

as well as add-on Demos, in my signature),

and there is a 15-day money-back guarantee period, 

so if you purchase the plugin, you can safely fully test it out, and if it doesn't fit your needs you can request and receive a refund in that period. ( same goes for all plugins and add-ons)

Let me know if you have any additional questions.