AWS EU regions, Azure Europe, Google Cloud EU - all subject to CLOUD Act and FISA 702. The "EU data residency" marketing is misleading at best. The report is from University of Cologne law professors commissioned by the German Interior Ministry. This isn't privacy activists - this is the German government acknowledging the sovereignty problem.
I'm running managed Redis/PostgreSQL on Hetzner infrastructure (German company, German/Finnish datacenters). Not just "EU regions" - actually EU-controlled top to bottom. €7.99/month for Redis, €4.99 for PostgreSQL.
The economics work because Hetzner CX23 servers are €2.99/month and I use multi-tenant architecture. No VC subsidy needed to compete on price.
More details: https://akcache.io
Happy to discuss the technical architecture or the legal implications here.