Since the last patch, US NY 7600 xbox official and other high population servers are now playable at peak hours and don't have the red server icon constantly.

In T176852#2526773, @Geez wrote:

Hello everyone.
Do you experience these lags in specific areas or during certain conditions (rain, night, day, players are nearby etc) or are you experincing this regardless of anything like this, besides the 50 players mark?

Here is a video example of how severe the problem is:

When testing, the issue is not present on community servers. Only on official.