In the US the government can take over parts of your facility, and that could mean installing whatever equipment they want or even setting up camp and running ongoing operations on location. They'd have no problem updating the canary of a company who refused to keep doing it themselves.
I doubt most business owners would risk losing everything on top of prison time though. The best we can probably hope for is that they'd decide to simply close shop like these guys did: https://www.eff.org/deeplinks/2013/08/lavabit-encrypted-emai...