How to increase localized traffic to EU domain hosted in US

Does server location matter? Google Search Advocate John Mueller provides tips for driving local traffic to an EU domain hosted in the US. In a post on the r/TechSEO subreddit, Google’s Search Advocate, John Mueller, responded to a Reddit user asking how to increase localized traffic to a European Union (EU) domain hosted in the United States (US).
The user’s client, who owns a .com and a .eu subdomain, hopes to increase targeted traffic to the latter. However, the user is concerned that the site’s server location could reduce the domain’s visibility in international search results.