Servers sitting less than 1km to each other tend to have lesser latency between them, compared to servers that could be anywhere on the public internet.
But if you have a zero-trust architecture and everything communicates over wireguard, then technically public or private won't matter right?
Not saying public/private IPs don't matter – since almost all the servers would still only have private IPs.
In a sense this is more like VPC peering.
I remember a failure of one transatlantic line that was used for one direction of packets we were sending between EU and US. I spent a night on a phone trying to convince AWS and our other datacenter operator to work around the problem by changing their routing and to push the backbone operator to fix the problem - we didn't have any relationship with the backbone of course.
You don't want such disruption to happen in a core part of your app. These disruptions can also be intermittent and "random" and you have no way to fix.
I think I know what you're getting at, and if I'm right, this isn't really a subjective or squishy subject.