It wasn't factually incorrect, you just didn't understand him because you're not using the video-game-specific meaning of the word "server." As you suggested,

It wasn't factually incorrect, you just didn't understand him because you're not using the video-game-specific meaning of the word "server." As you suggested, it refers to multiple "parallel dimensions" between which the playerbase is split to avoid overpopulation; that's how almost all other MMOs work. Whether each of those runs on a single physical computer is irrelevant to anyone except the host.