That is kind of interesting. I wonder specifically what it's for. It theoretically shouldn't be the cause for the lag though as It's the host that sets up the game that other players connect to. However, and a big however, if it's where some of the actual game servers are, it MAY explain the absolutely terrible matchmaking as it can't get accurate ping times to set up decent games, which in turn solves 90% of the lag problems in this game. Considering the number of people that play this game, there should be no reason whatsoever for some of the ping times in these games, yet the server continues to pair people in Maine with people in Cali. Guess what it may not be that far in relative terms, but you are talking a good 30-50% (or significantly more) ping increase connecting with hosts across the country. And, the game continues to do it match after match, making it miserable for anyone too far away.
And, sorry for the ignorance but I am speaking strictly in the U.S here.
