Hey! Can I use SSG work server pages that return nested client components?

Currently examples only show react components that don't use state. However, I have a server rendered page with a react client component utilizing state. Will nextjs prerender that client component properly? Or can SSG only work with static html components, that do not use state? Example code:

export const dynamicParams = false;
export const revalidate = false;

type Props = {
  params: { addressSlug: string };
  searchParams: { [key: string]: string | string[] | undefined };
};

export async function generateStaticParams(): Promise<Props['params'][]> {
  const addressSlugs = (await db.property.findMany({
    // Limit ISR to only California addresses due to vercel build error memory, for now.
    where: { address: { state: 'CA' }, addressSlug: { not: null } },
    select: { addressSlug: true }
  })) as { addressSlug: string }[];

  return addressSlugs;
}

export default async function Page({
  params: { addressSlug }
}: Props) {
  const decodedAddressSlug = decodeURIComponent(addressSlug);

  const { propertyId, formattedAddress, missingFieldsSchemaString } =
    await api.property.getPropertySchemaToFill.query({
      addressSlug: decodedAddressSlug
    });

  return (
    // Client component is react component. It has useState and useEffect inside.
    <ClientComponent
      propertyId={propertyId}
      formattedAddress={formattedAddress || ''}
      missingFieldsSchemaString={missingFieldsSchemaString}
    />
  );
}

Whenever I build, it gives an out of memory error. Is this caused by the client component or just vercel compute limitations?