Mounting the Gecko 3X0's near the servo

I've suddenly developed encoder noise problems on the Y axis of my
mill. I think I know what the problem is but this got me thinking
about relocating the Gecko out by the drive but I wasn't convinced it
would accomplish anything. From an interference perspective wouldn't
noise affect the step signal just as much as it affects the encoder
signal? Any thoughts, recomendations or experiences?

Roger