SE's (Google in particular) DO take note of geo information to decide "where" a website is. They will look at the top level domain (.com, .net, .uk), the hosting IP, an din the case of G, and possibly Y, any address data in the site (they can detect post code formatting etc) If any one of those indicates a UK site for example, it will be treated as such (inserted in the UK index, boosted for UK terms etc)
This means that the server location is irrelevant for a .co.uk site. I have also seen limited evidence that a .ocm, hosted on a US IP can rank in the UK index, if it has enough UK linkage data (incoming and outbound). SEs can be quit esmart, just don't assume it
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