I've talked with companies like that as well and they start with strict rules and end up allowing clouds because no solution is compliant anyway.

I guess it works when you don't have any compliant competitor.

Hetzner or OVH would be compliant.

They are however far from service parity with AWS, Azure and GCP.

I can't speak for Hetzner but OVH has also availability issues.

That is exactly the problem at hand.

It's a combination of low to no enforcement, competitivity-killing laws and unrealistic efforts for said companies to take on.

Yep. The real question is how long until we get one.

Scaleway seems to go in the right direction but still a bit of work needed