they could be on mars it would be the same.
the stream is brodcasted through softlayer servers which are located in Europe, US even in Sidney or Singapore.
I know where they are located, but in normal cases video stream is transfered over the Atlantic just once. When you open the video stream for example in America you don't get connection to server located in Europe, and vice versa. Of course there are some exceptional cases (like StnCld316?) who are using for example proxies.
You still get the same lagging issues using a Proxy. Your internet is still provided by your regular ISP. All your doing is masking your IP to make it look your from another Country.
If you get lagging issues try flushing your DNS may help.
Bring up the command prompt and enter, ipconfig /flushdns that may help to a certain extent or it may just stay the way it is but it don't hurt to try.
A lot of people are having streaming lag. As posted in the EU Invite, changing your DNS can greatly resolve this issue at times.
DNS is the process in which your pc converts IP to Domain Name and vice versa. If your ISP is having DNS issues to certain websites (youtube/streaming/game ping) you can get a quicker response time with the following DNS at times.
The best is to use Google DNS: 8.8.8.8 and 8.8.4.4.
An alternate to Google is to use OpenDNS: 208.67.222.222 and 208.67.220.220.