Cue https://en.wikipedia.org/wiki/Freedom_of_association.
"Because freedom of association necessarily recognizes pluralistic sources of power and organisation, aside from the government, it has been a primary target for repression by all dictatorial societies."
And that freedom is rather young (19th century).
Hosting/owning data and the processes on them is no different as an exercise of sovereignity.
At this point, today, it's more a matter of law (it must be recognized and guaranteed) than a matter of ability (it's possible) or market (it exists). That's where the battle is.