Quick Answer: React Server Components (RSC) fundamentally shift Next.js architecture by moving more rendering and data fetching to the server, reducing client-side JavaScript, improving performance, and enabling finer-grained component boundaries. In practice, this lets teams build faster websites with smaller bundles, better SEO, and a cleaner split between static/server-rendered logic and interactive client-side UI.
React Server Components change Next.js from a primarily client-hydrated application model into a hybrid server-first architecture. With RSC, components can execute only on the server, stream rendered output to the browser, and fetch data without shipping their implementation to the client, which lowers bundle size and improves Time to Interactive and Core Web Vitals. The architectural impact is significant: teams must explicitly separate server-safe logic from browser-dependent code, use 'use client' only where interactivity is required, and rethink data flow, caching, and composition so that static content, server rendering, and client interactivity are each placed at the most efficient layer of the app.