I have a client asking to lease a VPS from us for SEO purchases. Is there anything I need to consider (obviously besides bandwidth requirements)? Are there any issues that can result from allowing SEO companies to lease servers? They have specific requirements about the server's geographic location. I wasn't sure if your IPs, or network, could get blacklisted for certain types of SEO activity.
SEO can be many things in a customer's mind, it can be as legit as "just need a different IP to host some sites and make some backlinks" and "take advantage of IP geolocation" as you mentioned or as stupid as DDoS competitor's site, run scrapebox, sending tons of spam e-mails, etc.
Anyway Google sure will blacklist subnets instead of IPs, but it kinda takes serious efforts to achieve this (constant abuse, link farms, hosting warez, etc).
Long story short, as your customer has a rational idea of what exactly SEO is, I don't see any problem to offer your services, it is actually a market with budget that usually knows what is paying for and tends to (due to the nature of SEO) be longterm customers.