Picking the right SQL Server collation for storage?

SQL Server stores Unicode data (NTEXT, NVARCHAR) in UCS2, always resulting in 2 bytes per character.

SQL Server stores Unicode data (NTEXT, NVARCHAR) in UCS2, always resulting in 2 bytes per character. A collation only affects sorting (and casing). In non-Unicode data types (TEXT, VARCHAR), only a single byte is used per character, and only characters of the collation's code page can be stored (just as you stated).

See this MSDN article on collations.

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