What do 'data types' refer to in Python programming?

In Python programming, 'data types' are categories that specify what operations can be performed on data. This includes determining how the data can be stored, manipulated, and interacted with throughout the code. Data types dictate how Python interprets the data, whether it's a number, a string, a list, or a more complex structure. For instance, performing arithmetic is only valid on numeric types, while string concatenation is a valid operation for string types.

Understanding data types is foundational in programming, as it influences how variables are declared, how memory is utilized, and what functions are available for data manipulation. This knowledge helps in writing effective and efficient code, ensuring that operations are compatible with the types of data being used.