This makes sense. And this is only accelerating - I talk to businesses in Germany and there's a genuine, non-insignificant number of people who want their data to be /physically/ in Europe.

Take this to its logical conclusion and basically, every company will need to segregate their data in regions. Most cloud platforms aren't really designed this way but it's coming.

There was a data locality law that India passed and Stripe had to do this massive migration project to segregate this data. I shudder to imagine what a more complex system would look like under such data locality laws.