Server admin questions

1. How much does server quality vs local pc quality determine lag. I am tryna play modded with some friends and I want to know if they will still be able to play with worse computers if the server is good enough --- ie. when the server generates terrain, loads items etc does it use his computer or is that all server side 2. in this said server with 3-4 people doing a heavier modpack (hopingh all the mods 10 if tech constraints allow), what size of server should i get? 8gb? 16gb? and does anyone have any reccomendations from dealing with a similar situation thanks
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