“Malicious Activity” on the shared hosting server can sometimes cause penalty of the site which is not even directly involved in those activities. However such penalties are not very common. So if your SEO efforts is not giving results, ensure whether your site is penalized or not, by getting it checked through some expert with the URL, keywords and a short description of the work you have done so far for promoting your website.
To do when you are penalized
Although dedicated hosting does have an advantage as far as search engine is concerned but they are not very cost effective. Instead of going for a dedicated hosting you can simply change the server and move to a different shared server. This would be cost effective solution and since such penalties are very un-common so it is highly unlike that this would repeat.
Local Hosting Benefits
If you want to target your website in 3 different continents the best way would be to go for local servers and 3 websites with local TLD domains and unique content. E.g. if you want to target Europe, North America and Australia, you can go for mywebsite.co.uk, mywebsite.com and mywebsite.com.au respectively.
Hosting in local servers definitely makes the download faster and also makes it easier to rank in local/regional search engines i.e. Google.co.uk, Google.com and Google.com.au, in this case.
However you need to make sure that content of all three website should be unique and is not the same otherwise they may get into the penalty of content duplicity. To avoid such issues you can simply go with one website (.com) hosted in US and we can help it promote for various regional search engines.
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