Issue resolved: fresh Valheim update lowers server latency

With the release of patch 0.147.3, dedicated servers will start using direct connections instead of the Steam Datagram Relay (SDR). This should result in much less latency for most players. Private Dedicated Servers are enabled by adding “-public 0” to the server command line, and you can only connect to them using the “Join by IP” button.

In addition to this, Valve is also working on fixes to the SDR system. And as far as Iron Gate Studios knows, there are some changes already made to the Steam Beta client.