Server with G-Portal and about 50 mods and 6GB Ram

Need help understanding something

So we just started our server and we're like 4-5 players max but I'm the only one on now. I started the server up and got on but it seems like the server is lagging like crazy, is this because it's loading LOD chunks for DH or what? I didn't do anything special other than moving the same DH Jar file over to my server, how does DH work on servers? I'm a bit confused
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