Why is my ip address 400 miles away?

I live in Phoenix, Az. With my vpn OFF, when I look up Target or Best Buy, etc the websites show my location as Los Angeles. Apparently AT&T has my signal going thru their server in LA. I’ve heard AT&T customers in other states say the same thing. A person in a Midwestern state says his ip address is in Georgia. Why do the ISPs do this?

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