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Well, that is not always true. What matter is rtt and latency, not actual distance. It is not at all uncommon to have lower rtt to servers that are physically further away then to servers close by, it depends on a lot of other factors as well.
Exactly, it is entirely depend on the website traffic.
Well, that's pretty much what I said.
Probably more like 200 feet, but anyway, there's a quite important factor coming with that: As a DC one would very much like to be well above the highest ever possible water level - and that's next to impossible in NL. In fact that is the greatest risk and danger in that country.
Btw, good point you made mentioning that physical/geo distance != "internet distance". I experienced a quite striking example myself when benchmarking a, I think it was Contabo, VPS and their HE routes to Asia went via Seattle. Similarly I recently read that some Singapore VPS to China route went twice across the Pacific ocean.
Also a very good point and something I know "the big" players take into consideration. Microsoft located 3 major dc's to Sweden instead of NL and what I've heard is that the risk of flooding was a major factor in that decision.
I have a vps located in a dc not even 30 km from where I live, it has a rtt around 50 ms. I also have a vps in Amsterdam which is 1800 km from where I live with rtt 19 ms.
I think "internet distance" as you call it is a perfect term to explain that geographical distance is not what matters. Of course geographical distance to some extent affects response times, but it is just one of many factors that goes into the "internet distance". Other factors can easily make the geographical distance irrelevant by a factor of magnitudes.
As someone who builds a lot of metro and wan this is something I often struggle with getting people to understand. I think I will actually start using the term "internet distance", just have to figure out a good metric for it.