The shorter the distance between the 2 end-points (server - client), the faster is the communication, that's a fact; although using CDNs can help achieve faster distribution of the data/content across the globe.
As for SEO, server location would hardly make any difference if anything else is optimized and focused on your target location. **Although page load speeds can affect rankings- and page load speeds can be increased when you host far away from your users.
Q: Is the server location important for geotargeting?
A: If you can
use one of the other means to set geotargeting (ccTLD or Search
Console’ geotargeting tool), you don’t need worry about the server’s
location. We do, however, recommend making sure that your website is
hosted in a way that will give your users fast access to it (which is
often done by choosing hosting near your users).
Selecting hosting provider:
Apart of the server location, there are more important things to consider when choosing hosting provider. Some of the most important:
- Expertise
- Security
- Support and communication channels
- Technology and Infrastructure - And compatibility with your needs.
- General Terms of Services and Limitations
- Performance, Reliability and Uptime
- Scalability
- Add-on Services and Essential Features e.g. backups
Price is important as well, but shouldn't be the most important factor when you plan ahead for an important business project/website.
Generally, when something sounds as too good to be true, in most cases it isn't, so be aware and do extended research - ask for advices, recommendations, get in touch with the hosting providers for pre-sales questions etc.
including regional information, many questions on server location already. Currently there is not enough uniqueness about this question. – Simon Hayter Jul 04 '16 at 12:25But, If your traffic is high better go with
– Atul Sharma Jul 04 '16 at 16:46Linode.