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1) even though it's local there are still multiple connections between your PC, ISP and Steam's download server which could have issues that cause slow speeds/failures. When connecting to another region you'll connect through different servers which avoids the problematic one(s).
2) server load, you're awake the same time as everybody else in your region so everybody may be trying to download at the same time. In a different region, if it's far enough away, they'll be less people using the server.