Does the Location of my Server effect my SEO?

[DanielBernhardt]

Does the geographic Location of my Server effect my SEO?

HELP US! We are arguing for 3 weeks already.

• My partner has mentioned multiple times in the past that  "since 2013 google does not require your server to be in the country you are targeting for seo"
  And that actually all they care about is if its a good and fast server - not where its physically located in the world.
• I am a strong believer that the geographic location of your server directly effects your SEO ranking... lets say if you want to target www.google.ru for your seo, best you have a server located in Russia for hosting your website..

WHO IS RIGHT? Choose the winner and base the facts.
If anybody has the correct answer and information to base it on it will help us alot - and maybe even spare some unnecessary violent between us two! we found some articles across the web, sadly they are all dated back to 2012....

Thanks in Advance for all the help guys!

[RobertFisher]

It is really quite a simple answer. In WMT, Google gives you the answers for targeting a specific country. Frankly, Google did not require your server to be in the country you were targeting in 2012... Remember, Google is not saying any of these is the end all or be all of geo targeting. They state clearly each is a signal and each signal has a given weight.

The first indicator if you base it off of what Google says (and your question seems to be anchored by the search behemoth)... ccTLD is the first indicator they mention. Google further states it is a STRONG signal. Next is geo targeting. The fact that there is an option to tell them where you want to target and that it is second would seem to indicate that server location was less relevant than you waving a flag and screaming: Hey Google! Hook me up in Russia please! 
The third (But not last) signal is... server location, but they are very clear about this being not as strong a signal when they state, "Some websites use distributed content delivery networks (CDNs) or are hosted in a country with better webserver infrastructure, so it is not a definitive signal."

And, finally, there are other on page signals that Google can use to determine where you are targeting like phone and addresses on the pages, language, etc. (If your server is in the US, your site is a generic TLD, you have not geo targeted in WMT, and the entire site is written in Urdu, it is likely not going to rank well in Lithuania, but would have the ability to rank in Pakistan or Bangladesh).

Now the winner is ... sorry, YOUR PARTNER. Please by him a nice 5 button, 2000 vintage, Tokaji as a compliment to his SEO prowess...this time.

Best,

Robert

[DanielBernhardt]

Thank you for your quick and informative answer Robert
Would you recommend also inserting Schema tags to help geo localization? is there more ways that I can increase my "relevancy" to the location I would like to target for SEO?

And i guess i knew this was coming... one bottle of http://en.wikipedia.org/wiki/Tokaji to my wise partner..

Thanks Robert.

[RobertFisher]

Good follow up question and I probably should have mentioned it even if GWMT did not. Yes, if you are a local business use that Schema. If you are an organization use that schema. It will help with your geo targeting.

Best