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Is the PHP server needed?

Yes, the PHP server is needed.

It acts as the bridge between your game and the Steam API. The PHP scripts are essential for:

  1. Secure Authentication: They handle the Steam OpenID login process and verification, making sure the user is who they say they are.
  2. API Communication: They communicate with the Steam Web API to submit scores to leaderboards, unlock achievements, and manage the rewards system.

The alternative would be trying to communicate directly with Steam's API from the game client, which is highly insecure and not recommended by Steam, as it would expose your API key. The PHP server keeps that key safe.

Thanks for the reply, and sorry for the dumb question but then, I need to have a backend on AWS or similar to deploy the server right?

yes you will need a php server, there is free services that can provide you a php server if your project is small, or you can host it using other services.