> what happens if you split the computations of that simulated brain over a million people equipped with pen and paper? Where is its consciousness happening now?

The thing with information is that it is not as localized as other physical quantities like spin, mass, or even energy. Conversely if the information were localized we would call it lack of thereof. Information between systems mean correlation between them. Same goes with information processing where changes in one system corresponds to changes in the other. It happens in between.