React Server Components offer a solution to the problem of client-side rendering and server-side rendering. They allow developers to define where their code runs (server or client) and fetch data directly within server components. This eliminates the need for complex data handling and improves performance. However, there are limitations to using React Server Components. CSS-in-JS doesn’t work in server components, React Context can only be accessed in client components, and there is added complexity in understanding and managing code running on the server and client. Despite these challenges, React Server Components can be incrementally adopted in a codebase to reap their benefits.
https://www.mux.com/blog/what-are-react-server-components