Data files are just the start for creating entities in Age of Goblins. Once the definitions are read into AoG, they're stored in a catalog of "blue prints" for generating entities and materials. Each blueprint holds information for each component that will be added to the entity.
When the game requests that an instance of entity X be added to the game world, it refers to the blueprint stored for that entity. As an example, lets look at some parts of the goblin data file. The following will describe some attributes that each goblin entity will be generated with when it's added to the game world.