Is it to support local/European companies - Great. Is it because you don't want to be at risk of the US and the CLOUD Act - Not so great. Any company that has servers in the US (which Hetzner and basically all CDNs do) are still vulnerable to the CLOUD Act and that includes servers in Europe.
If you spin up your servers in EU locations they are under German ownership and EU regulation. Others, such as those in the US, are owned by a subsidiary and those are subject separately on the Cloud Act. Correct me if I'm wrong.
For my company it's about the "pulling the plug" usecase. We create a SaaS product for semi-critical infrastructure - we don't need 99% uptime but more than a few hours and it's problematic.
Sure, most cloud/VPS providers have sites in the US as well, but worst case only those places would be affected if the US decided to do a Special Military Operation on Greenland for example.
Wonder if any large geopolitical rifts happened eh. I soul would not host my application in Russia either for instance
All without congressional approval. And apparently without the US population knowing about it.
Why risk using US tech?
It costs more, and the people running it likely may not be my friends