The problem is that if Vultr really thinks it can exercise these rights, then there is a risk that proprietary information stored on their servers will be made public -- despite what EU or any other laws might say.
It doesn't really matter if you can take them to court if Vultr causes a data leak that results in the loss all your customers. And most of us don't have the resources to be able to do that anyway.
All of that said. I've found Vultr really good to work with and I am crossing my fingers, though not assuming, that this is a mistake.
I've raised a ticket with them, and I'll give them a couple of weeks before I make plans to pull out. Fortunately I'm still in stealth mode and have zero customers, so I can afford to wait. I'd be absolutely freaking out right now if I had live customers.
What a company write in their TOS is an indication of what they intend to do. Broad scopes also means broad intentions (like startups).
You could read into that, that Vultr is intending to break the law in the EU, however little there is to do about it.
Its a liability for the customers knowing this. But it is also a liability for Vultr who will see it more difficult to establish in the EU, should that ever be wanted.
Additionally, ToS really don't count for much in the EU, they're usually not enforcable anyway, if there's anything out of the ordinary at all. There's a whole lot of stuff in ToS nobody is ever going to be able to enforce at all.
They probably expected to fly under the radar, without making sure it's even okay everywhere. Well, that's not going to happen I guess.
They obviously had an inent to start using the data for something, and given what I know about tech businesses, I wouldn't assume they only started once the ToS change was made. I would consider my data compromised.
The new ToS were surely a big project with tens of hours (or more) of research done for it.
The redditor's lawyer just picked up a phone and offered some gut response. My lawyer friends are happy to share their thoughts, but they usually tell me that they need to do research to provide reliable guidance.