Localised Hosting is Good for SEO - But How Local?

[RiceMedia]

Hi SEOmoz community,

A UK based client will soon be opening an office in the USA.  We have advised them to create a new website specifically aimed at the US market, primarily because the way you talk to your potential customers is slightly different than here in the UK.

However, this has also raised the question of hosting.  Of course we'll be advising them to host their new US site in the States, however does it matter where?  For example, if their office is in NYC,  would it matter if their hosting was based in Dallas?  I.e. does Google rank sites hosted in a US city / state higher for localised searches?

Interested to hear your thoughts - thanks for your time!

Mark

[bozzie311]

I would say if all their prospects are in NY host it there. Otherwise host anywhere in the us and use a cdn.

[RiceMedia]

Cheers bozzie311, I'll look into that - much appreciated!