In XSD 1.0, sec. 3.2.7 says (sec. "untimezoned times are presumed to be the time in the timezone of some unspecified locality". That seems to me a pretty clear indication that they don't default to UTC for validation purposes, and also that they don't default to local time for any fixed locality (e.g. the server's time). Sec. 3.2.7.4 describes (in some detail and at tedious length) that the ordering relation on dateTime is a partial order, not a total order, because (for example) the untimezoned value 2000-01-20T12:00:00 is neither definitely earlier than, nor definitely later than, nor definitely equal to, 2000-01-20T12:00:00Z.
XSD 1.1 revises the text of the discussion a good deal, but it comes to the same thing.
I believe that this is consistent with the rules in ISO 8601.
What an application makes of untimezoned values, and what other specs do with them, is a separate issue, to be answered application by application and spec by spec. But for XSD purposes, it's clear that there is no default timezone.