The total cost of that stack is remarkably low — cheap enough to offer VMs at $0.02/hr running and $0.50/mo stopped, which undercuts most hyperscalers for bursty workloads. The "billions in investment" framing is exactly the problem. Most of what hyperscalers sell is convenience wrappers around commodity compute, and the lock-in is the product.
Wrote up the economics here if anyone's curious: https://shellbox.dev/blog/race-to-the-bottom.html
I think the Heztners and their ilk are coming along nicely and probably can support a lot of Europes cloud computing needs, but they aren’t in the same league as the hyper scalars when it comes to capabilities currently. It would be great if they got there for everyone though.