How do you define one location? If it's like, a contiguous plat of land with a bunch of buildings, each containing suites, and each of those containing clusters... then these days, yeah, that's probably not too much of a stretch.
And yeah, physical machines, not VMs. Sometimes they're blades, sometimes they're sleds, but I mean real hardware made out of metal that you can pick up and use to defend the datacenter if you have to.
(Although, honestly, I was talking about global counts in the million+ range when I wrote it since it was referencing the past, but by now, a region with a million+ is not far-fetched.)