What is multi-tenancy in data processing systems and what challenges does it introduce?

Multi-tenancy allows multiple users or organizations to share the same infrastructure securely and efficiently.

In multi-tenant data platforms, resources like compute, storage, and pipelines are shared across tenants while maintaining isolation. Challenges include noisy neighbor problems, resource contention, security isolation, and quota management. Systems like Snowflake implement virtual warehouses to isolate compute per tenant while sharing storage.