I would like to set a different storage path for each of my clients, so each client gets a dedicated HDD setup. After some searching around the internet the only solution i have found is to install multiple servers, one per client. Is this seen as good practice or is there another way to solve this?
I wouldn’t say its good practice. You lose deduplication that way. Most people use one storaage path for their urbackup clients possibly spanning multiple disks.
If you really need one client, one disk repository then I suggest you look at restic or kopia. They are client based but both have UIs.