I'm intending on having a group of dedicated servers hosted 29ms away from the database cluster [AWS]. Is this an acceptable latency? Or should I attempt to do something else with my databases?
I'm not in a position to manage my own database cluster, hence my decision to use AWS to host my databases.
It depends very much on the application.
I use a development DB server which is ~20 ms away and my web app runs considerably slower (5-20 times) compared to a LAN server.
It might be possible to mitigate most of that, but it will cost a lot of effort and you might end up with a ad-hoc local cache copy of your DB anyway.