Next.js Server Components: When to Use Them (And When to Avoid Them)

Server Components changed how we think about React architecture. After building dozens of production apps with Next.js 14+, here's what actually matters.

The Core Decision

Ask yourself one question: Does this component need browser APIs or user interactivity?

If yes → Client Component ('use client')
If no → Server Component (default)

That's it. Everything else is optimisation.

When Server Components Shine

Data fetching at the component level. No more prop drilling from page-level getServerSideProps. Each component fetches what it needs, and Next.js deduplicates requests automatically.

// components/UserProfile.jsx (Server Component)
async function UserProfile({ userId }) {
  const user = await db.user.findUnique({ where: { id: userId } });

  return (
    <div>
      <h2>{user.name}</h2>
      <p>{user.bio}</p>
    </div>
  );
}

Keeping secrets secret. API keys, database connections, and sensitive logic stay on the server. Zero client bundle pollution.

Heavy dependencies. That markdown parser or date library? Keep it server-side. Your users' browsers will thank you.

When to Reach for Client Components

Forms and inputs. Anything with useState, useEffect, or event handlers.

Browser APIs. localStorage, window, navigator - these don't exist on the server.

Third-party components. Many libraries aren't Server Component compatible yet. When you see "useState can only be used in Client Components," you know what to do.

The Pattern That Works

// Page (Server Component)
import { InteractiveWidget } from './InteractiveWidget';

export default async function DashboardPage() {
  const data = await fetchDashboardData();

  return (
    <main>
      <h1>Dashboard</h1>
      {/* Server-rendered, SEO-friendly */}
      <StaticContent data={data} />

      {/* Interactive island */}
      <InteractiveWidget initialData={data.widgets} />
    </main>
  );
}

Keep the interactive bits small. Fetch data in Server Components, pass it down as props to Client Components when needed.

Common Mistakes

Mistake 1: Marking entire pages as Client Components. You lose streaming, you lose the bundle size benefits, you lose server-side data fetching.

Mistake 2: Trying to use hooks in Server Components. If you need useState, that component needs 'use client'.

Mistake 3: Importing Client Components into Server Components incorrectly. The import is fine - Client Components render on both server (initial HTML) and client (hydration).

Real-World Impact

On a recent e-commerce build, switching to Server Components for product listings reduced the JavaScript bundle by 34%. Time to Interactive dropped from 2.8s to 1.6s.

The architecture change took a day. The performance win was immediate.

The Bottom Line

Server Components aren't about rewriting your entire app. They're about putting code where it belongs - server logic on the server, interactive logic on the client.

Start with the default (Server Components), add 'use client' only when you need browser features. Your bundle size and Core Web Vitals will improve without you trying.

---

Building high-performance Next.js applications at LogicLeap. We obsess over the details so your users get fast, reliable experiences.