Hey Steve...your answer completely supports my research today.
From Google:
Geotargeting factors
Google generally uses the following elements to determine the geotargeting of a website (or a part of a website):
- Use of a ccTLD is generally a strong signal for users since it explicitly specifies a single country in an unmistakable way.
or
Webmaster Tools' manual geotargeting for gTLDs (this can be on a domain, subdomain or subdirectory level); more information on this can be found in our blog post and in the Help Center. With region tags from geotargeting being shown in search results, this method is also very clear to users. Please keep in mind that it generally does not make sense to set a geographic target if the same pages on your site target more than a single country (say, all German-speaking countries) — just write in that language and do not use the geotargeting setting (more on writing in other languages will follow soon!). - Server location (through the IP address of the server) is frequently near your users. However, some websites use distributed content delivery networks (CDNs) or are hosted in a country with better webserver infrastructure, so we try not to rely on the server location alone.
- Other signals can give us hints. This could be from local addresses & phone numbers on the pages, use of local language and currency, links from other local sites, and/or the use of Google's Local Business Center (where available).