Locally (on your computer), the binary sequences that make up data are temporarily stored in RAM and are stored long-term on your hard drive, but they can also be stored in the cloud. "The cloud" just means "somewhere on the Internet but you don't really know where." You have been using the cloud throughout this whole course. All of your Snap! projects are stored in the cloud; they aren't on your local computer. That's why you have to log in to access your projects. Similarly, if you use Google Drive or Dropbox, all of those files are stored in the cloud. And if you use a web-based email service (such as Gmail or Yahoo), your emails are stored in the cloud.
You can store your data (photos, music, videos, text, etc.) either locally (on your computer) or in the cloud. Storing data in the cloud means storing somewhere on the Internet, but you don't have to worry about where—the cloud service provider (Google Drive, Dropbox, Snap!, etc) manages the actual storage location.
Some applications run in the cloud and never get downloaded to or installed on your computer at all (like Snap!).
You have been using the cloud throughout this whole course! All of your Snap! projects are stored in the cloud. That's why you have to log in to access your projects.