This is a too broad question to have an exact answer and different games have different servers
Servers are separate computers placed in a region, probably in a server farm or using a virtual server provider already existing infrastructure like amazon.
They communicate with the HQ over the internet.
As for network issues, they are at different places on different internet connection. One server or the main server going down doesn’t really affect others. BUT it all depends how the servers are programmed. If regional servers need some data from HQ to function properly they too gonna stop.
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