In what universe do they need to be collecting data from kids, especially that which cannot be kept locally.
Telemetry data (which I suggest is reasonable that they collect) can be stored in local 'log' style DBs. It's not data they need to repatriate.
Although for login and identity management, it might be reasonable to have that quasi centralized for security reasons. While MS could afford to build for each country, almost no other companies could.
Finally, we need to be wary folks: this is ultimately a kind of regulatory capture.
I'm already working with small startups that are struggling with this - they have customers unwilling to have their data stored in other countries and it's a giant problem.
MS and G can afford to deal with it, startups, not so much.
Edit: Gosh I wonder if that's an PaaS opportunity right there, aka 'transparent nationally stored data' ...