They solve different problems. Choose from your plugins/mods first, then size the server.
Short answer
Paper fits plugin-led public servers; Fabric fits mod-led servers and performance mods. Neither is universally faster for every workload.
01
Choose Paper when
You need Bukkit/Spigot plugins, mature moderation tooling and server-side optimisation without requiring client mods.
Public SMP and minigames
Plugin ecosystem is the priority
Mostly vanilla clients
Aggressive configuration tuning acceptable
02
Choose Fabric when
You need Fabric mods, lightweight loaders or performance mods while retaining closer vanilla behaviour.
Mod compatibility drives the stack
Clients can install required mods
Version-specific dependencies checked
Mod list tested as a unit
03
Resource differences
Both benefit from fast single-core performance. Fabric memory varies with the mod list; Paper CPU cost varies with view distance, entities and plugins.
Start 4–6 GB for a modest server
Add memory for large modpacks
Pregenerate worlds to reduce spikes
Profile plugins/mods before buying more RAM
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