Turning on "damage numbers" in gameplay option increases lag (in a party, everyone has to turn them off). It seems that if everyone in a party has turned damage numbers off, they're only calculated on the server but not transferred to the client.
Certain effects that increase the amount of calculation required increase lag (e.g., a Shield Pylon's reflect shield, Health Link packs, probably even all sorts of procs and stuff like life on hit, though those effects are quite small)
If you're playing solo it looks like you can pause the game hitting ESC to let the server "catch up" with the calculation (see Alkaizer's GR72 clear video).
Lag is experienced for all players, all classes, in all regions, all ISPs. It's extremely bad in 3 of the 4 regions (EU seems to be definitely worse, followed by US, the new Chinese realms - only KR seems to be a bit better). So it's not entirely wrong to say it's an issue with the Blizzard servers - but it might also go beyond that. We don't know.
Lag has always been an issue in this game, and there's no way it's gonna be fixed and gone any time soon. We can only hope the situation will improve "soon-ish".
The lag issue has been addressed in the Reddit Q&A and they said they don't want to hotfix this as it might "break the game" in some way. The current big issues however are that EU has serious connection problems - which will be fixed "soon-ish" (bluepost on German B.Net forums).
Posted 20 min ago as a reaction to the disconnect we had. They're working on it, but it's basically a Telia issue that's mostly out of their hands. Doesn't really have anything to do with the lag issues we normally have.
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Here's what we know so far:
I'm experiencing terrible lag in Asia server. 2k Ping. Can't even play. Please do something with the server !!!
mine is 3000 mSec ....... lot of HC charecters die i get clan reports
dont play !!!!
EU is currently disconnected and battle.net is completely down, so can't login to any blizzard game nevermind just D3.
"Our technicians are still working to resolve the connectivity issue
players in Europe are experiencing. Including the most recent disconnect"
Posted 20 min ago as a reaction to the disconnect we had. They're working on it, but it's basically a Telia issue that's mostly out of their hands. Doesn't really have anything to do with the lag issues we normally have.