I don't think it matters where the server is located to be honest! If you have a good server, good connection, and it is optimized correctly then it will perform at it's best whatever the location ...
Funny thing about a lot of hosting companies is that even though they may be UK located or USA etc ... Most times their servers will be located in different locations for example UK companies may have servers in Germany and other non-UK locations ...
Over the past number of years I have had servers in many different locations and it's never made a difference to Speed, rankings or anything else for my network ....
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