A Discord "server" is a colloquial term for the community space. The nitpick is meaningless, I could have an AWS "server", but at the end of the day we both know it's a virtual instance that sits on an actual server.
It's deceitful for discord to use that language because it implies some level of independence.
A VPS service like AWS goes out of their way to specify that it is a "virtual server". the product they provide is analagous to real server hardware and largely interchangable with other server hosts.