The only thing that may eat up memory is the final name directory in the "footer".
No compression also has the added benefit that you can pre-compute the final size of the zip file if you know what goes into the zip already (it's just a matter of summing up the sizes, and the sizes of the info entries and final footer entries), which can be nice when sending the result over http, as it enables you to send a Content-Length, instead of not sending one because you don't know it yet, using chunked transfer encoding and letting the browser show some "20MB of unknown downloaded".
Then it really depends on the implementation. A lot of libraries will buffer in an entire input file, compress it in one go and store the result back to disk or some buffer, and things like that.
But it is perfectly possible to implement a zip writer that implements a stream/callback interface to read the result compatible with whatever your language is using (e.g. C++ istream (yeahyeah :P), C# Stream, python file-like objects, node Readable streams, etc).
With the python standard library zipfile implementation, while it is possible to open "file-like objects" (i.e. objects implementing read/write/seek, like a BytesIO buffer), it isn't really possible easily to drain the data after just a chunk of it is done (or have it output to network/http streams, as these usually do not or cannot implement seek). The OP implementation solves this by defining everything you want in the zip beforehand and then using python generators to get the data out in chunks that you can then write to whereever you want sequentially.
Funny to see the usual great programming school divide so succinctly put :)
Anyway, already seen a number of times https://news.ycombinator.com/from?site=github.com/buzonio