Selected answers from the Dumb SEO Questions Facebook & G+ community.
Wissam Dandan: Maybe this will help you 😉 https://builtvisible.com/ip-location-search-results/
Radu Plugaru: It`s not important, in the sense that you shouldn`t even be thinking about it, especially if you have to work on other optimization tasks first.
Steve Gerencser: The only time hosting should come into play is when it sucks or when you need to load balance and have multiple locations around the country / world to reduce server loads.