The address is sent to a public geolocation service — ipwho.is, falling back to freeipapi.com — both free and used without an API key. Only the network tools on this site (this one, DNS Lookup and WHOIS Lookup) ever make a request; everything else runs entirely in your browser.

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IP & Geolocation Lookup Guide

About this tool

Show the public IP address you are connecting from, or look up any address, along with its country, region, city, coordinates, timezone and ISP. This is one of the few tools on this site that talks to the internet: it uses free, key-less services and falls back to a second one if the first is unavailable.

Questions

Why does it show a different city than where I am?
Geolocation is based on the address your ISP has registered, not on your physical position, so it usually lands on the nearest city where the provider has infrastructure.
Which services does it use?
ipwho.is first, then freeipapi.com. Both are free and need no API key, and the tool tells you which one answered.
Does this site store my address?
No. The request goes from your browser straight to the provider and the result is rendered here. Nothing is logged by this site.