Some people have said things like “he can dream with the programme but doesn’t actually sleep”, although some people have told me he does in fact, sleep similar to how other life forms do.
Depends on what you think of as “sleep” and what processes are involved. Does Data’s brain have brain waves that change to make him go unconscious? Is Data even “conscious” and what is “conscious” (there’s some debate about that on the show)?
He doesn’t sleep as a physical necessity like humans, for example. It is a programmed cessation of normal mechanical functions that includes a dream creation program, so it is still a form of sleep even if it does not serve quite the same function as a humanoid.
i would say yes, as it seems his body kind of “shuts down”, he relaxes, and his brain creates dreams.
