Let's say the data is stored on a host server and is a little large. Will that pose any issue if we expose it via a REST API? If so, what solution would you propose?

Large data can cause several problems when exposed through a REST API: long response times, high memory usage, increased bandwidth costs, and a higher chance of timeouts or failures. To mitigate these issues, you can: 1) Implement pagination or cursor‑based fetching so clients request only a subset of records at a time. 2) Use streaming responses (e.g., chunked transfer encoding) to send data incrementally. 3) Offer a file download endpoint that streams the data as a compressed file (gzip, zip). 4) Cache frequently accessed data in a CDN or in‑memory store. 5) Provide asynchronous ingestion or background jobs that return a job ID and let the client poll for completion. 6) Consider GraphQL or OData if the client needs flexible field selection. These techniques reduce load on the server, improve client experience, and keep the API responsive.