Question regarding server side render distance

Server question

Just a quick question that has me a bit confused. I understand distant horizons is client side, but I’m a bit confused how that interacts with server render distances.

Obviously having high render distance on a server causes a great amount of lag. I want to install distant horizons on my server, but I know no server would be able to handle such render distances as a setting within the server itself.

So for example If the server render distance is 16, does distant horizons still work by allowing the player to via their client go way beyond that granted the chunks are already generated?

Thanks in advance for any help.
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