I've worked the last few years in a research institute well-funded by academic standards. During that time, people around me have used self-hosted hardware, at least three different cloud providers, and HPC clusters hosted by several different organizations. I've also worked with people from many other institutions, each of which has made its own infrastructure choices.
You may use AWS yourself, but your collaborators have made their own choices for their own reasons. The data goes where it's needed, often crossing institutional boundaries.