lexipixel - 11:52 pm on Sep 24, 2011 (gmt 0)
I'm surprised some people don't think the IP location makes a difference.
It didn't back in the day, but as Google ramped up their local search and improved on local results I'm pretty sure the server location became a factor weighting the results.
I disagree. The phone number and address tied to that phone number are the key "local search" / Google Places factors.
I can demonstrate a small niche site with many, many #1 natural search rankings targeted specifically to a 10 mile radius of a New England town --- the server is in Utah. The site is less than 3 months old... it has only 2 inbound links -- and they come from servers in Utah too.
My suggestion is always -- Make sure the address and a phone number located within the geographic area you want to be found in are on every page of the site and you don't have to worry where the server (or IP address) trace to.