OTTAWA — A new government white paper on digital sovereignty says Ottawa can’t maintain full control over its data if its data storage supplier is subject to the laws of another country. It warns the federal government can only maintain full legal control if it delivers the service itself, or uses service providers that operate […]
For more information on the subject, Microsoft has been fighting this battle, largely unsuccessfully, for years.
https://en.wikipedia.org/wiki/Microsoft_Corp._v._United_States
It’s also why they had Azure Germany - an instance where they were not actually in control and data could remain sovereign. I believe it’s now defunct, or at least restricted.