if you are concern about it there are easy ways to avoid sharing the IP address of your server using TOR, IPFS or even a non KYC VPN configured in your router.

But if your server is for your own private data to he used only by you and your family I see no need, yet, every risk level is different for everyone

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He is talking about a nostr relay. Important to remember your relay list is public so even if it is just you using it, it still doxxes your IP unless you take provisions against it.

correct, and again, very easy to setup with a VPN or TOR