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Does My Web Server Location Affect My Ranking In Search Engines?

YES!

We have seen some huge web page ranking increases from search engines that are using a server located in the same city as your business.

For example, if you have a vacation rental in San Francisco, CA it would be ideal to also have your server located in San Francisco.

How Do I Find Out Where My Server Is Located?

Go to the following website and type in your domain name:
http://www.selfseo.com/find_ip_address_of_a_website.php

As an example, when I type in VRBO.com I get an IP address of 209.8.187.216

Then use the geo locater tool located here:
http://www.ip2location.com/demo.aspx, to determine where your server is located.