That simply isn't the case anymore. Location is becoming less of an issue with the advances in fiber optics technology. You can get the same load speeds anywhere now a days.
Last time I checked the laws of physics had not changed. The speed of light is still the speed of light and it still takes the same amount of time for light to travel over a bit of fibre as it did 10 years ago.
You are confusing that there is now a lot more fibre and potentially there might be a shorter path between the source and you than there was in the past. Of course the location still matters, but not quite as much as it used to.
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Location always matters but certain things aren't as latency dependent. You're going to have more issues using a VOIP service from the other side of the world than browsing a page on a web server on the other side of the planet, for example.
The nice thing about CDNs and things like CloudFlare is that it can essentially decentralize your server so that your content is available from numerous locations around the world - making the core location of the server less important.
At the end of the day it's still best to have the server as close to the majority of your users as possible in most cases.