SQL Server is a row oriented database. This is in contrast to a column oriented database. This means that in SQL Server, all of the data for a given row is stored together on the disk. Let's have an example:
Say you have a Customer table with 3 columns, FirstName, MiddleInitial, and LastName. Then, say you have 3 records in this table for Jabba T. Hutt, Dennis T. Menace, and George W. Bush.
In a row oriented database (like SQL Server), the records will be stored on disk as such:
Jabba, T, Hutt; Dennis, T, Menace; George, W, Bush;
In contrast, a column oriented database would store the records on disk like this:
Jabba, Dennis, George; T, T, W; Hutt Menace, Bush;
Where columns are grouped together instead of rows.
Now, when you go to add a column to a table in a row oriented database (SQL Server, for example), the new data for each column has to be inserted alongside the existing rows, shifting the rows requiring a lot of read/write operations. So, if you were to insert a new column for the customer prefix that defaults to 'Mr', this is what you'd get:
Mr, Jabba, T, Hutt; Mr, Dennis, T, Menace; Mr, George, W, Bush;
As you can see, all of the original data has been shifted to the right. On the other hand, when you insert a new column that defaults to NULL, no new data has to be put into the existing rows. Thus, there is less shifting, requiring fewer disk read/write operations.
Of course, this an oversimplification of what's actually going on on disk. There are other things to take into account when dealing with indexes, pages, etc. But, it should help you get the picture.
For clarification I'm not at all suggesting you move to a column oriented database, I just put that info in there to help explain what Row oriented meant.