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Usually it’s better to keep everything under one domain if you can. Google tends to trust established sites more, so adding well-structured location pages often works better than starting a brand-new site from scratch. You just have to make sure each location page is clearly focused on that area, with unique content and local signals like addresses, reviews, or Google Business listings.
Separate domains can work, but you’re basically starting over with authority and backlinks, which is a lot slower. Targeting multiple regions on one site won’t confuse Google as long as each page is clearly optimized for its specific city or province.
