Introduction to Multi-Tenant Architecture
engineeringatscale.substack.com
engineeringatscale.substack.com
You'll notice cloud providers host their government customers on a separate tier for this reason. But it takes a lot of work to segregate the traffic.
Single-tenant isn't all bad– just a design decision with tradeoffs. With virtualization you can often make those tradeoffs more easily than before.
the primary reason for this is that nobody but us citizens can touch these services, including the service operators.
EDIT: you may be talking about compliance regimes that necessitate that only certain operators have access to certain data (or in some cases have no access at all). while that may be a compliance requirement, that's also stuff aws just does /anyways/ and fits along normal operating procedure of least privilege and defense in depth. what doesn't align with normal operating procedure is something like only americans can look at these logs, because most companies don't built teams by nationality.
otherwise, almost all compliance regimes don't necessitate tiering. and by avoiding tiering and building your multitenant services on top of all of the other multitenant services that aws offers that are XYZ compliant (https://aws.amazon.com/compliance/services-in-scope/), it becomes very straightforward to get your service compliant. this is what makes tractable for every one of those pages to have just about every aws service that matters marked as compliant.
and this isn't just conjecture; i've sat through several of these reviews personally and so long as you build your service in the aws way you spend about a day or two of your team and then a little bit later your service is certified, save for FedRAMP where you spend some amount of time setting up new loadbalancers and any artifacts that need to use to switch to a FIPS-compliant ciphersuite.