It was labeled as an EU data-center so that European players could play together.
As the game has a heavy focus on Free Companies and Free Company activities (usually static groups).
Players called for an EU label so they could find players in their time-zones to play with, as North American servers would cause time-differentiation or language issues.
For example all the majority of French players go to Moogle (EU), so they have a similar time-zone and language set (regardless of the server location).
I can assure you that you're not going to get knocked off the edge in Titan HM because you have 100-140ms, you're just not moving out it before the CAST bar finishes (the graphic means nothing compared to the cast bar, as the dev team have stated before). You would not get 40-60ms unless the server as situated within 1,000-2,000 miles or less of you, in this case there would need to be a French/German data-centre and a Middle-Eastern Datacentre.
And I can also assure you, if you're getting hit in Titan HM under the current data-centre, you're still going to get his with this one as it's not an issue with the server, the problem lies yet again most likely in the connection for your AREA.. Hundreds of thousands of people who live further across the world than you do are able to clear Titan HM with 100-200ms, it really isn't that bad in FFXIV.
Not you personally (although it could be), there are just some areas in cities/towns and various countries where the overall connection hops between You > Server > You isn't as fast or stable and therefore latency issues occur, this is not Square Enix fault and they're simply not liable or likely to fix/respond to it.
Any response in the past to a physical EU datacentre has been shot down (as i'll explain below)
It's not about "breaking up with friends", that's not the point I'm making. This is an issue of money.
Datacentres are very very VERY expensive to set-up a new data-centre.
Hundreds of thousands for just one or two servers alone, so no it won't affect me but it will affect the game overall.
And as I said before, it's a case of the connection in your area. 100-140 ms for an MMO is perfectly fine, there is nothing in this game that is unplayable until you hit around 300ms+.
It is a personal connection issue, either in their own home or the area they live in (but they'll still argue otherwise)