What is a limitation of using VARCHAR(MAX)?

Choosing VARCHAR(MAX) can indeed lead to poor indexing performance. This is primarily because VARCHAR(MAX) is designed to store large strings of varying lengths, up to 2 GB. When it comes to indexing, databases often need to efficiently compare values to determine order or uniqueness.

When an indexed column is defined as VARCHAR(MAX), the database management system may have difficulty optimizing queries involving this column. This is due to the unpredictable size of the data it can hold, potentially leading to inefficient scans across large strings, which can affect overall database performance. Consequently, it's often recommended to use a fixed-length or shorter variable-length string type when indexing is a priority, thus providing quicker lookup times.

The other options do not accurately reflect the characteristics of VARCHAR(MAX). It can be utilized for very large datasets, supports special characters, and may not necessarily require more storage space uniformly compared to other types; rather, it uses space according to the actual size of the stored data.