Then the power situation in California went all haywire, with rolling blackouts and whatnot. If you have your server center located there, you're paying the price. Location does matter: you need the right infrastructure.
But once the infrastructure is in place, location indeed doesn't matter anymore. If you can get your server center powered, cooled and maintained, it doesn't matter where it is located.
Iceland has virtually free power (because all you need to do to get steam is run a pipe into the ground), highly qualified personnel, and it is located on top of several optical backbones between the US and Europe.
What's not to like?