VPS hosting, also known as Virtual Private Server hosting, is a type of web hosting service that provides users with a virtualized server environment. In VPS hosting, a physical server is divided into multiple virtual servers using virtualization technology. Each virtual server operates independently and has its own dedicated resources, such as CPU, RAM, storage, and operating system.

VPS hosting offers more control, customization, and flexibility compared to shared hosting, where multiple websites share the same server resources. It provides users with a higher level of performance and reliability since the resources are allocated specifically to each virtual server, reducing the impact of other users' activities on the same physical server.