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It's literally the closet with all the wiring. I.e. generally where all the user data and/or telecom wiring is found; the local area wiring hub. For data, it's also generally were the edge access ports are found (which in turn uplink to another device, often found somewhere else).
These closets generally are kept locked. If not, the actual devices within them are often found in a cage that's locked.
Another term that's related is "IDF", but that denotes more the function than the physical location. I.e. user edge devices might even be found in a data center.
