The answer is simple, yes. Google pay no attention to the IPs of the servers where the websites were housed. Following this, when searching for a Mexican restaurant in Paris or Barcelona we could end with same results. Google took a step in the purification of the results and decided that if a user searches for a Mexican restaurant, it is logical that you are looking for a restaurant in Barcelona and you may not be interested in the results for restaurants in Paris. Likewise, if a company offers a service in Barcelona and addresses to customers are located in Barcelona, why should this website appearing in Google results in France? In practice this means that in different countries get radically different results.
How Google handles this? in 2 ways. If a site uses a second level domain such as .es, then you do not have to worry about where your host is located because Google will offer Google results mainly in Spain. But what happens if we use a .com domain? Google then simply detects the IP since we connect, that is our ADSL. Following this, Google knows in which country we are, so Google just have to deliver results of websites hosted on servers with Spanish IP. Therefore, competing in Spain with a web page with a .com domain hosted in Germany is a problem for the positioning of the web with Google.
There geolocation tools you can enter on our website via Geo Meta Tags but Google does not taken it into account as Bing does. Therefore, if the target market for a website like ours is the web design in Barcelona, it must be hosted on a server with a Spanish IP.