I just wouldn't use a corporate server. This here is more like old internet before the likes of google started to buy everything and consolidate the internet. Running a single server is not the same as a server farm in multiple countries.
I started on lemme.world but it's been getting hammered so I made a backup account on lemm.ee
Yes when your feed is on local is the server you are on and all is all servers. It gets weirder though because you will also see posts from defederated servers, we can still comment like normal on them too but that server itself that's defederated the people on that server will not be communicating with the rest of the federation.