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" Official Server Building Restrictions

Please remember that other players share the server with you. Do not restrict access to unique or high-value in-game content.

Specific cases that represent unique, high-value content or behavior that prevents other players’ gameplay:

  • Blocking of content in the game, such as dungeons, obelisks, lore stones, recipes, resources, unique NPCs, and other areas of the game.
  • Abuse of the claim system where blocks are placed for no other purpose than to prevent other players’ access to resources and building spots.
    Please also check out our documentation about Land Claim Abuse on Official Servers for more information.
  • Constructions leading to loss of performance both on client and server side.
  • Blocking or Walling in other players’ bases.
  • Using land claim rules to prevent the expansion of another player’s base when not adjacent to your own base."

Enough said.
I’ve been playing since 2019 and never got banned for land claim.