Personally, I think where does matter and is counted as another positive indicator that the site is legit if the TLD and location of hosting match. I only have limited examples to draw from but I recall there being a 2 position increase after moving from Justhost to a Canadian hosting solution for a .ca.
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ThinkTankSEO
@ThinkTankSEO
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Calgary, Canada
Job Title: Owner | Head SEO Specialist
Company: Think Tank SEO
Calgary Web Design: Sites Design To Convert
Favorite Thing about SEO
SEO can have a massive impact. The linkage between what we do and the profits made is pretty tight..
ThinkTankSEO
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RE: Does the physical location of a server effect the local rankings of a site?
Owner and operator of a top ranked Calgary SEO company.
My approach to SEO was shaped by the first big penguin update in spring 2012. At that point I was a full time web designer and had hired an SEO who ranked and rented me 3 sites which all were #1 or #2 and got me hooked on ranking at the top of Google's organic search. After getting wiped out I set to learning SEO myself.
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