I tried changing the render distance to short and it stops them, but I'll do a relog, hadn't considered that method.
Edit: tried a reboot and it only helped briefly and the lagspikes were back, setting the render distance to short eliminated the semi-random spikes.
Edit2: Gonna update the vid card driver to see if that helps any.
Edit3: Maybe it helps slightly, but still getting lag spikes for no apparent reason.
Edit4: Can someone see whether they are also getting the lag spikes? I tried going to a different area, even taking the rails halfway to spawntown and I'm still getting the lag spikes. Its not quite as bad, but that could just be because I'm underground. This is the first time I've consistently gotten lag like this, so somethings up. Whether its just me or not I don't know.