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If you encounter lag on your server and notice the “Can’t keep up” error in your server console, this indicates your server’s performance is being significantly impacted. So much so that you may start to notice a time dilation effect or TPS (Ticks Per Second) drop which in effect can cause server lag.
The nature of this error makes it difficult to deduce the cause. As such, to resolve this error will require a moderate level investigation to pinpoint the cause.