Well that all depends upon which theory of Atlantis you believe.
If you think Plato was telling the truth in Timaeus and Critias then Atlantis is located somewhere in the middle of the Atlantic Ocean.
One of the more likely places would be around the Azores Islands. The Azores are a group of islands belonging to Portugal located about 900 miles (1500 km) west of the Portugese coast. Some people believe the islands are the mountain tops of the sunken continent of Atlantis.
(For more information about the Atlantic theory click here.)
On the other hand, if you feel that Atlantis was an exaggeration of the historical destruction of Thera and the Minoan empire, then it is found in the Aegean.
The island of Thera, also known as Santorini, is a volcanic island located due north of Crete in the Aegean Sea. Sometime around 1500 BC is was devasted by a volcanic explosion that may have contributed to the sudden downfall of the Minoan civilization.
(For more information about the Thera theory click here.)
But, if you believe Atlantis was simply a story then it was only located in the long decayed brain of Plato.