Choosing a location for your hosting service can boost how fast your website loads and help with local SEO rankings. How?
If your website’s visitors are located in the United Kingdom you want to choose a location close to them so that the data doesn’t have to go as far. If you choose a location in the USA that means your UK visitors have to go further to view the website and it adds time to the time your webpage loads.
Similarly if you are a restaurant in New York you want to choose a nearby location since most of your visitors will be in New York and you want your website to load as fast as possible.
If you have a global audience that is a bit trickier, but generally anything in the USA is a good fit for that.
From an SEO perspective it can give a very small benefit by giving one more indicator that you should rank for searching in that city/region.