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$MYSQL_DIR/data, where $MYSQL_DIR is most commonly /usr/local/mysql.
Note that the dir is owned by the mysql user, so you'll have to do
sudo -s
to become root in order to cd to the dir.
Well, it's not encoded, it's stored in a binary format for obvious reasons (efficiency).
Remember not to back-up those files whilst mysql is running. If you want to back-up whilst mysql is running, there are other "hot" backup strategies that you can use. Further details are left as an exercise in Googling for the reader.