Nope, issues with the servers will be fixed by optimizing them -- Physical location has no bearing on the server's performance. FFXI is 100x more responsive and snappier than XIV's servers and interface due to being well optimized as well as having datacaps iirc.
For instance: popular web hosting services are generally European or Japanese based but you won't ever notice any issues until they have issues on their side. XIV's problems arises with using a server side interface and bad server infrastructure including settings -- Those issues get resolved it wouldn't matter if the servers were located in Antarctica, if the servers themselves are well optimize it won't be hindered.