I hear what you're trying to say, but there are problems with this basis.
There is no clear established legal-nexus between the your purported statement of "protecting consumers", and banning the use of any data center owned by multi-national corporate entities who host protected data exclusively internal to the EU in accordance with all known EU data-protection regulations. Now to be clear, I'm not saying this is your statement or position.... but it's what you wrote.
So it boils down to a false-dichotomy; This is protectionism, but not to be confused with consumer protection. The protectionism is the kind protecting EU owned & operated data centers.
I think analogies are awful, but to give an analogy it's like banning a product sold by any multi-national corporation simply on the basis they are not originally EU multi-national corporations. For instance, banning the sale of McDonald's chicken-nuggets, because McDonald's is a foreign corporation, and then alleging the corporation violate the consumer data protection laws because the nuggets are not EU nuggets
It makes no sense because there is no causal-link or rational basis, it's all irrational. Just because irrational laws have been the norm for a while, as you say particularly in Germany, doesn't make them rational now. That's a variation of the ad-populism fallacy.