It is only a content server; gaming-wise, Gameplanet's servers are local and served out of our network :).
It's still populating currently, which'll take some time... and even when it's fully populated, we can't guarantee your Steam client will pick our server as its source, so we can't guarantee you'll get local traffic (you'll need to look for the various Steam management software packages for that). That said, it's in, it's serving (I'm guessing probably just TF2 patches currently!), and it's awesome :D.
It's up and running - has been since last night :). IP is 22.214.171.124. Like I said though, it's still populating, so there's very little content on it now - I'd hold off putting it in your Steamwatch for a week or so. Probably a bit premature announcing it before everything's on it, but I'm pretty stoked to have it up and running (and have nothing but respect for Valve's amazing professionalism!).