> People treat AI like a diary, and the government can request that data at anytime.
Isn't the case for any US company? I'm working in an european SaaS business, and we consider that any data that goes through Azure or Google Workspace can be accessed by the US government on a whim, even if their datacenter is on our soil.
If it's your customers' data you can use E2EE. If you need to read it, it is probably cheapest to keep everything on EU infrastructure to avoid paying repeat egress costs.
You might also consider shipping software-as-software, which doesn't need cloud resources, and the data can only be searched one customer at a time.