You really just follow the World Composition path: World Composition User Guide | Unreal Engine Documentation
The trick is to have each server process know what zone it’s interested in. You can for example pass this in on the command line when starting each server process. (The cluster management of which servers you need to run to run a world is yet another interesting area to solve, btw.)
Set the “interesting area” for the world for each zone to some box that goes from center to center of the neighboring corner boxes, so the “interesting” border goes
(You can also load a 3x3, and only handle the center 1x1 yourself, but that leads to a little more unnecessary data being loaded.)
You’ll want each tile to be small-ish, because the size of tiles specifies the area that must be handled by one server process, and there’s a limit to how many players can be handled by a particular server.
I’m basically suggesting a concrete implementation of this suggestion:
World Composition User Guide | Unreal Engine Documentation.
Another option would be to build explicit sub-levels, and explicitly load/unload them as appropriate on each server (and the client.) You can still build multiple terrains that line up, by creating new terrain actors for each sublevel.
Option 1: “build your own server,” is not unreasonable, BUT it has the problem that server-side logic can’t easily re-use all of the engine editor features for things like collision detection, scripted events, etc. You might be able to still use the editor and export to your custom server format – there’s lots of work here.
Also beware that the built-in origin shifting doesn’t really work for multiplayer.
And finally, UE5 brings us World Partition | Unreal Engine Documentation
MMOs are hard, both in technology, and in game design
I’m assuming you’re a small independent developer, either one person, or a small team. You really won’t have time to address all of the things that need addressing to get to the state of the art with large open worlds, server scalability, and all the rest. Even “the simplest thing that could possibly work” for each of these areas, is too much for something less than a full, funded, multi-year team effort.
You may indeed be better off building a smaller-scale “ORPG” with traditional levels that load as you “zone” between them. That’s reasonable to think about as a small independent developer.