Dedicated server provider lying about servers location?

Solution 1:

Geolocation is not an exact science. The databases are full of errors and misinformation.

Note: OVH do not appear to have a Spanish DC.

Who is passing on terminological inexactitude I wouldn't like to say.

Looking at the output of mtr to both of the IPs listed, it appears that both systems are likely located in the OVH Gravelines DC in France.

sudo mtr -c10 -r -n 51.254.154.225
[sudo] password for iain: 
Start: Mon Feb 27 12:58:53 2017
HOST: fedoraws                    Loss%   Snt   Last   Avg  Best  Wrst StDev
  1.|-- 192.168.1.2                0.0%    10    0.3   0.3   0.2   0.4   0.0
  2.|-- ???                       100.0    10    0.0   0.0   0.0   0.0   0.0
  3.|-- 31.55.185.181             90.0%    10   11.8  11.8  11.8  11.8   0.0
  4.|-- 31.55.185.180              0.0%    10   13.0  12.9  12.7  13.5   0.0
  5.|-- core1-hu0-17-0-1.colindal  0.0%    10   12.0  12.2  11.9  12.4   0.0
  6.|-- 195.99.127.81              0.0%    10   13.9  13.6  13.2  13.9   0.0
  7.|-- ???                       100.0    10    0.0   0.0   0.0   0.0   0.0
  8.|-- be10-1193.gra-g1-a9.fr.eu  0.0%    10   15.6  19.6  15.2  49.0  10.4
  9.|-- vl21.gra-g1-a75.fr.eu      0.0%    10   15.6  15.9  15.6  16.3   0.0
 10.|-- vl5.gra-3a-6k.fr.eu       90.0%    10   15.0  15.0  15.0  15.0   0.0
 11.|-- host-es.ipadicto.com       0.0%    10   14.9  15.2  14.9  15.5   0.0

and

sudo mtr -c10 -r -n 51.254.154.158
Start: Mon Feb 27 13:00:04 2017
HOST: fedora                      Loss%   Snt   Last   Avg  Best  Wrst StDev
  1.|-- 192.168.1.2                0.0%    10    0.2   0.3   0.2   0.4   0.0
  2.|-- ???                       100.0    10    0.0   0.0   0.0   0.0   0.0
  3.|-- 31.55.185.181             80.0%    10   12.0  12.1  12.0  12.3   0.0
  4.|-- 31.55.185.188              0.0%    10   12.1  12.4  12.1  12.7   0.0
  5.|-- core2-hu0-17-0-1.colindal  0.0%    10   13.3  13.1  12.8  13.3   0.0
  6.|-- 62.172.103.19              0.0%    10   13.5  13.4  13.1  13.8   0.0
  7.|-- ???                       100.0    10    0.0   0.0   0.0   0.0   0.0
  8.|-- be10-1193.gra-g1-a9.fr.eu  0.0%    10   15.2  15.4  14.8  15.9   0.0
  9.|-- vl21.gra-g1-a75.fr.eu      0.0%    10   15.5  15.6  15.5  16.0   0.0
 10.|-- ???                       100.0    10    0.0   0.0   0.0   0.0   0.0

Solution 2:

There is another way to check, which is to query some BGP looking glasses.

This is generally more reliable than GeoIP (as mentionned by @Jacob, GeoIP databases vary in quality and freshness), since BGP is the protocol for routing the ranges across the cyberpipes (or is it interwebz).

Generally, you'll need to check a few locations to make sure you aren't seeing aggregated routes, BUT, ultimately, every IP belongs to AS, and that AS can easily be traced to a company.

Per the Hurricane Electric looking glass (http://bgp.he.net/ip/51.254.154.0#_ipinfo), OVH indeed owns that /24, and its supernet (51.254.0.0/15). Checking a Spanish looking glass, http://www.rediris.es/red/lg/lg.pl, seems to confirm as much (but this is nothing more than a quick check on my part).

Your traceroutes/mtr outputs seem to confirm as much: the IP is owned and announced by OVH, and routes, at least, via them (if not to them).

tl;dr: it seems your provider is using a French provider, and their data centers/infra. This isn't 100% certain, but seems the most likely explanation.

Edit: to be clear, the fact OVH is AS to which the IP is allocated doesn't necessarily mean anything about specific locations. Sadly, neither necessarily does mtr-output - even if (as seems to be the case) OVH are pushing out the whole /24 your provider is a part of with a peer in France, some internal transport (e.g. MPLS) could still be used. That wouldn't necessarily be the most sensible way of doing all this, but it isn't impossible.

Solution 3:

Not that all of the other answers aren't great and really helpfull (it is worth reading every post in here) but I think I just found the answer myself yesterday.

So, we were in need of another IP for one of our servers located in France rent with So You Start, which is just like Kimsufi (they both are OVH companies) but a bit better and more expensive. When I got to the administration panel and clicked on "Add extra IP Addresses", they let me choose the location of the IP and, guess what? Spain was there.

Here's the screenshot that proves it. It is in spanish but I think it's quite easy to understand the concept.

Conclusion:

There's some spanish (and probably somewhere else) hosting companies reselling OVH dedicated servers located in France with spanish IPs as if they were located in Spain, increasing the monthly cost between 3 and 4 times.
Appart from being absolutely ilegal, it is insulting how these bastards keep on ripping off people with IT related stuff. Just be aware when spending your money (specially in Spain right now) and, just like a friend says, don't even trust a flower.