It's located in Germany. Due to this, there will inevitably be higher latency for us in the U.S., but it was still playable and fine most of the time for me before it went down for reconstruction. Here's a quote from Trishin, one of the devs:
"We hope that uthgard 2.0 will bring a lot of US players. Hopefully all US based players will help spread the word, and while Uthgard is hosted in Germany (which we understand can cause some concerns for US players), we want to make it a good experience for everyone. During the beta it would be very helpful to have US players report on issues such as the server connection and lag issues, so we can try and work out any issues there might be before we launch."
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