What is the dedicated server region based on?

[Wave_Hunter]

Can I choose the region when I'm hosting a dedicated server? I live in Japan and my friend is in Australia and instead of hosting from Japan I want to host a dedicated server from Australia so we can play anytime w/o having waiting the host to launch the server. 

[Daniel86268]

Not sure what you mean. If you mean the Region that your server connects to, it's just the serverlisting with the lowest latency to your own Server. The region your server connects to doesn't matter at all gameplay wise, neither for who sees your server, nor how high the latency is.

If you mean the dedicated server itself... just take a hoster in that specific region you want it hosted in?

Or did you confuse between a dedicated server and a client hosted one? The client hosted servers shut down, when the host closes their game. A dedicated Server can keep running all day long, even if noone is playing on it. You can check out this guide on how to set up one (you need a dedicated server/PC that has to run while the server should be reachable), or you can rent one in a region of your chosing from one of the many available hosters, that offer managed gameservers such as Nitrado (No preference or recommendation on a specific hoster here, it's jsut the first that came to my mind).