Earlier last year I was doing some research that involved repeatedly grepping through over a terabyte of data, most of which were tiny text files that I had to un-zip/7zip/rar/tar and it was painful (maybe I needed a better laptop).
With Zstd I was able to re-compress the whole thing down to a few hundred gigs and use ripgrep which solved the problem beautifully.
Out of curiosity I tested compression with (single-threaded) lz4 and found that multi-threaded zstd was pretty close. It was an unscientific and maybe unfair test but I found it amazing that I could get lz4-ish compression speeds at the cost of more CPU but with much better compression ratios.
EDIT: Btw, I use arch :) - yes, on servers too.