The device that serves as the central storage location for shared files on a network is known as a file server. This server acts as a centralized hub where users can store, retrieve, and manage files. It allows for enhanced collaboration among team members, as it enables simultaneous access to the same files from different devices. File servers improve data security through access controls and backups. By centralizing storage, organizations can also reduce redundancies and improve data management, ensuring that files are up to date and easily accessible.