No, it doesn't.
First, you create the tools you need with the money your people give you. Then, you give back the tools you created to the public and/or everyone who needs them.
You keep your data in your own data center, use the tools which squarely fills the needs of your workers and people, and you share its maintenance with the outside users.
It's a win-win-win (country, its workers, people in the world). WWW is developed the same way, Europe's open data repository Zenodo (https://zenodo.org) is built the same way, alongside countless science tools.
We shouldn't be afraid of governments doing cool things. Heck, most if not all supercomputer centers in the US and around the world are government funded, and free for scientists.
Moreover, the project is licensed MIT to enable to be "taken and ran with it" by private sector. From the README.md:
> While Docs is a public driven initiative our licence (sic) choice is an invitation for private sector actors to use, sell and contribute to the project.