This was indeed reported by some customers, and this problem has been fixed in UE 5.3.
It should theoretically be possible to backport it to previous versions by merging inside Engine\Plugins\Runtime\GeoReferencing\Source\GeoReferencing\Private\GeoReferencingSystem.cpp the changes made around line 925 from 5.3 sources.
Note that you need to cook AND package the server to have the right data files staged along your server data files.
For anyone else experiencing this: I resolved (short term) by copy+pasting the Georeferencing plugin folder from my UnrealEngine plugins/runtime folder to the output package folder at the path in the Setting search path in log line (so that when UE looks for ..../Resources/PROJ it exists.
Some additional comments for people finding this thread
We just found a bug specific to Linux, where the PROJ files were not included in the pak files. It has been fixed and will be part of our next release, but meanwhile, you can apply it by editing Engine\Plugins\Runtime\GeoReferencing\Source\GeoReferencing\GeoReferencing.Build.cs and replacing the folder delimiters in @“Resources\PROJ*”); by @“Resources/PROJ/*”);
Some users using a computer with strong security settings (no admin rights) reported the proj.db file could not be opened. It happens when installed in “Program files”. Installing the engine in another writable location should fix it. (proj.db is opened with a write access request)
If you need to diagnose, you can always raise the verbosity level of this plugin with this console command : Log LogGeoreferencing Verbose
thanks for the follow up Alban! your suggestion didn’t work for me - (I recompiled the Plugin using RunUAT with your suggested change, replaced the Engine/Plugin/Runtime/GeoReferencing content with the built output, then re-started and re-built my Unreal project with no difference in the output.).