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