A DHCP Server is a network server that automatically provides and assigns IP addresses, default gateways and other network parameters to client devices. It relies on the standard protocol known as Dynamic Host Configuration Protocol or DHCP to respond to broadcast queries by clients.
When a host (DHCP client) needs an IP configuration, it connects to a DHCP server and requests an IP configuration. A DHCP server contains several pre-configured IP configurations.
The DHCP server, automatically assigns IP addresses and other network configurations like subnet mask, default gateway, DNS server, and more to the connected devices so they can exchange information. DHCP lets the hosts get the necessary TCP/IP configuration data from the DHCP server.