Do I need a UK Server for Google UK?
Do I need to have my website located in the UK to rank well for Google UK?
If You have already chosen your target market, you have a country specific domain name for that country (i.e. .co.uk for the United Kingdom) but you host it outside that country (i.e. in the EU or other country).
Here is the good news: If you have a country specific domain name, the location of your host doesn’t matter, it does not affect your ranking. In other words, your country code top level domain name (co.uk) will not be influenced by the IP of the server you are hosted on.
Another thing, it is known that .co.uk domains always rank higher on Google.co.uk, no matter if your business is based in the USA, EU or the UK. The domain (or its extension/ suffix) determines its geo-location in all the major search engines, Google, Bing, Yahoo etc., The fact that you use a .co.uk domain name shows that your company/ business is based in the UK. This means that if someone located in the USA wants to search for a UK company, they will look in the google.co.uk. Hence, chances of ranking for UK google results are much higher.