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Microsoft getting nervous about Europe's tech independence
(www.theregister.com)
This is a most excellent place for technology news and articles.
European data on European servers is fine, as long as American agencies can't just access data on those (which one cannot rule out with American companies).
There is no requirement for the company to think about that. The majority of GDPR-compliant companies still store on AWS/GCP, just on EU servers.