If your customer is in the public sector that is probably the case.
Mandatory reading is some info on Schrems II. Starting point: https://en.wikipedia.org/wiki/Max_Schrems#Schrems_II
Mandatory reading is some info on Schrems II. Starting point: https://en.wikipedia.org/wiki/Max_Schrems#Schrems_II
https://noyb.eu/en/statement-max-schrems-schrems-ii-annivers...
Nyob is one of the roups raising these issues with the EU data protections groups
Similar things are happening in other countries:
https://techcrunch.com/2021/08/17/stop-using-zoom-hamburgs-d...
https://edri.org/our-work/microsoft-office-365-banned-from-g...
If you want to stay ahead and will have customers in the public sector in the EU, you should probably consider hosting within the EU.