Answer
A PostgreSQL cluster is a collection of databases managed by a single server instance, sharing one data directory.
Quick Answer
A database cluster in PostgreSQL is a collection of databases managed by a single PostgreSQL server instance, sharing the same data directory (PGDATA), configuration files, and WAL log. Not a "cluster" in the distributed sense - just one server managing multiple databases. Each cluster has its own port, processes, and system catalogs.
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Source: SugharaIQ