Location always matters but certain things aren’t as latency dependent. You’re going to have more issues using a VOIP service from the other side of the world than browsing a page on a web server on the other side of the planet, for example.
The nice thing about CDNs and things like CloudFlare is that it can essentially decentralize your server so that your content is available from numerous locations around the world – making the core location of the server less important.
At the end of the day it’s still best to have the server as close to the majority of your users as possible in most cases.
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