Hello,
Location of server does matters for latency, if you are targeting UK market and your site is also hosted on UK server surely ..your site and products will reflect fast for your UK based client. Same if you have your site on US serve it may face latency issue ..surely SEO is not a term just related to keywords..it also matters how fast your site contains are loaded.
My personal experience and work around says location of server is surely important for SEO.
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