Sharding in MongoDB allows for horizontal scaling of data and operations across multiple servers. When determining if sharding is needed, factors like available storage, query throughput, and response latency on a single server are considered. The number of shards can be calculated based on total required storage, working memory size, and input/output operations per second across servers. Different types of sharding include range, tag-aware, and hashed sharding. Choosing a high cardinality shard key that matches query patterns is important for performance. Reasons to shard include scaling to large data volumes and query loads, enabling local writes in a globally distributed deployment, and improving backup and restore times.