When the processor needs to access external memory, it starts placing the address of the requested information on the address bus. It then must wait for the answer, that may come back tens if not hundreds of cycles later. Each of the cycles spent waiting is called a wait state.
Wait states can be used to reduce the energy consumption of a processor, by allowing the main processor clock to either slow down or temporarily pause during the wait state if the CPU has no other work to do. Rather than spinning uselessly in a tight loop waiting for data, sporadically reducing the clock speed in this manner helps to keep the processor core cool and to extend battery life in portable computing devices.
From:wikipekia