Interserver VPS can be deployed from the West Cost (Los Angeles, CA) or east Cost (Secaucus, NJ) datacenters. Deploying your services from a location that is closer to you will reduce latency. Low latency service is important in some platforms such as stock trading. Or deploy in both locations to build redundancy into the service you are deploying.
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Rather than being hosted on one single instances of a physical server, hosting is delivered on a virtual partition which draws its resource, such as disk space, from an extensive network of underlying physical servers. If one server goes offline it will have no effect on availability, as the virtual servers will continue to pull resource from the remaining network of servers.