It is one of the most iconic locations that Freddy has used in all of the movies. Most of Freddy's confrontations, victories, and defeats have taken place here, such as the death of Kristen Parker, Freddy's defeat and Tina Gray's first nightmare sequences in the opening of the first movie.
In his former life, Freddy Krueger worked at a chemical plant in Springwood, Ohio as a janitor. Unbeknownst to the other people working there, Freddy was using the plant's boiler room as the location where he would kill the children of Elm Street. This would also be the room where he died after being burned alive by the angry parents of Elm Street and where he was reborn as a dream demon.
Freddy would usually lure his victims to the boiler room in their dreams, where he proceeds to stalk and toy with them before killing them. He would sometimes connect the boiler room to his nightmare version of 1428 Elm Street in the basement area of the house. Many battles and confrontations took place in this area and many children died.