Alternatively they could mirror an approach that Microsoft had with ther Office Online for a while, that is find a European company acting as "trustee" for the data, so that even if the NSA came knocking the US based company would not have any data on any of their infrastructure it could give them.
But, at the heart of it, it makes sense. If foreigners can use services in your jurisdiction, you want to see what they do for security purposes.
Nonetheless, it's against the belief of "innocent until proven guilty."
If legal protection from the state is enforced (even for other states) this means there need to be wholly separate services in each jurisdiction.
This seems very undesirable, especially for the US with it's multinational web companies.
which is the correct conclusion? As the state can only offer legal protection under its own jurisdiction.
Sure, real life complicates things a bit. (mainly, the jurisdiction of the EU as an institution in and of itself compared to its member states is a messy affair) but it is still a totally valid argument none the less.
Not sure I follow, US gov can't legally protect non US citizens from itself abusing them? It should be as hard for the spying to happen for an US or non US citizen or company.
As a "foreigner" in a friendly country I'm understandably not too happy about this. And the logical outcome is that the US will lose business anywhere this is unacceptable.
There are a LOT of things that law enforcement agencies want that they should not get. The fact that they want it or that it would be useful to them is not enough of an argument to give it to them. It has to be balanced against other factors, to decide what is best for society as a whole.
Given that the big 3 cloud providers already have some trouble providing stable operations, I suspect it won't be the pinnacle of reliability, but have no first-hand experience with them.
Pricing for services in the EU GDPR "Sovereign" safe-zones (e.g. "Germany Central (Sovereign)") is largely the same as for services in other zones:
Azure App Service in Germany Sovereign: $62/mo
Azure App Service in West US: $54/mo
1TB Azure Storage in Germany Sovereign: $21.00
1TB Azure Storage in West US: $20.80/mo
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As for reliability, I haven't noticed any difference in availability and downtime between my Azure resources in any of the zones I've got services in. YMMV. Lately Azure's actually looking pretty good compared to AWS's spate of outages over the past 6 months.