If your service shares state globally across all users (like a social network) not really. If individual customers are mostly centered around one geographic location and their data isn't shared with other customers, yes.
Even social networks tend to shard their DBs geographically. It's obviously not 100% effective (I can always add a friend on the other side of the world), but it significantly improves the average case (the majority of my friends will have gone to school/university/worked in the same geographical locations I did)