"or the server component" -> No, it doesn't really make sense to run server actions in server components. If you want to manipulate data in a server component in most cases you'd directly call the ORM for example. db.update(1,"hello")

"use server"
// imports
import { ratelimit } from "@/app/server-actions/rate-limiter"

export async function generateBusinessNames(
  userInput: string,
  subClass: BusinessNameGeneratorSubclasses
) {

  if (!userInput) {
    return { error: "No User Input." }
  }

  // Rate Limiting
  const ip =
    headers().get("x-forwarded-for") ??
    headers().get("x-real-ip") ??
    "anonymous"
  const { success } = await ratelimit.free.limit(ip)

  if (!success) {
    // In Dev let the request through and log that the user would be rate limited
    if (process.env.NODE_ENV === "production") {
      return {
        error:
          "Too many requests. Please try again in 1 hour or upgrade to a premium plan.",
      }
    }
    console.log(
      "Rate limited would've blocked this request. But DEV Mode is letting it through."
    )
  }
  // ------------ END Rate Limiting
...

"server only"

import { Ratelimit } from "@upstash/ratelimit"
import { Redis } from "@upstash/redis"

export const redis = Redis.fromEnv()
// Rate Limiter
export const ratelimit = {
  free: new Ratelimit({
    redis: redis,
    prefix: "ratelimit:free",
    analytics: true,
    limiter: Ratelimit.fixedWindow(10, "3600 s"),
  }),
  paid: new Ratelimit({
    redis: redis,
    prefix: "ratelimit:paid",
    analytics: true,
    limiter: Ratelimit.fixedWindow(60, "3600 s"),
  }),
}