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The video discusses data fetching in Next.js, comparing client-side and server-side fetching methods. Client-side fetching involves more code and slower initial load times, while server-side fetching offers cleaner code, faster responses, and improved SEO. Server-side fetching reduces time to first contentful paint and allows search engines to index content more easily. Additionally, server components simplify data fetching logic by keeping it closer to the data source. Overall, server-side fetching in Next.js provides a better developer experience, faster load times, and improved SEO benefits compared to client-side fetching.