Should we shrink the database and log files, or keep the TEMPDB size under check to improve SQL Server performance?
I don't recommend shrinking databases or log files for any production application. The only scenario I think that frequent shrinking of databases and logs are acceptable is on laptop-based applications, such as a sales support application. I would not prevent TEMPDB from growing and would set the growth factor to a substantial amount (in fixed megabyte size) because this reduces the extremely I/O-intensive process of allocating more space to TEMPDB. For example, in one production application, we set TEMPDB to 250 MB by default. We then set TEMPDB to 250 MB in fixed growth for every time it needed to grow.
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