Data pagination allows for retrieving data in smaller chunks or pages, improving performance and reducing the amount of data transferred. In ASP.NET Core Web API, you can implement data pagination by accepting parameters like page size and page number in API endpoints. By combining these parameters with appropriate query logic, you can retrieve the requested page of data from your data source. Additionally, you can include metadata in the response, such as the total number of records or the number of pages, to assist clients in navigating the paginated data. Implementing data pagination in your Web API enables efficient data retrieval and improves the user experience when dealing with large datasets.