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In this video tutorial, the instructor demonstrates how to clear server log files. The log file is taking up a large amount of space, nearly 90 gigabytes, and needs to be cleared to free up space for storing more database files. It is recommended to back up the log file before clearing it to avoid any mistakes. The process involves accessing the database properties, finding the file paths, using command lines to alter the database and set recovery to simple, and specifying the file name to clear the log file. This will help in efficiently managing server storage space.