Next.js is often perceived as a frontend React framework known for its server-side rendering and performance features, but it also supports serverless functions through its API routes, allowing for backend integration within the same application. The article details how to set up a GraphQL API in Next.js using a fully typed setup with TypeScript, Postgres via Prisma, and a code-first GraphQL schema using Nexus. By leveraging the DataLoader package, the setup avoids N+1 query issues, improving performance when querying data such as albums and artists from a Postgres database. The process includes configuring Prisma for database interactions, creating a context for global resources like the Prisma client, and utilizing DataLoader to batch database queries. Additionally, the setup involves defining GraphQL types and resolvers, with the context supporting lazy-loading of data to optimize query efficiency. The article concludes by suggesting further enhancements such as adding mutations and authentication to expand the application's functionality, highlighting Next.js's capability to handle backend tasks seamlessly.