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For a custom module I had to define some sequences in XML.

I saw an example using the following attribute:

<data noupdate="1">....</data>

What   is ...noupdate="1"...  used for?

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Hello all,

noupdate means when second time this module will upgraded, this record will not be updated again. The record which is inside noupdate="1" will be initialized only at installation time.  

Tip : In case if you delete the record then at next update system will Re-create it. Usually those kind of records which are having possibility of modification from front end, given inside noupdate=1. For example, automatic scheduler records. 

Hope this will help,

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This record will never be updated. Not only second time.
It's also used for demo data in modules for example.

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