But those do exist and they are generally a lot cheaper; not more expensive.

BTW. it's all hosted in the EU if you use it in the EU. Amazon, Google and Azure have data centers all over Europe and using those is not optional for EU based companies. If that wasn't the case, they'd have no business here. Companies legally have to host in the EU and do business with US cloud providers through EU based subsidiaries (mostly based in Ireland. There's a bit of a murky situation with what level of access US intelligence agencies have exactly to all the data or who copies what where and when. But generally, data isn't supposed to leave the continent unless that's needed/required.

I work in Germany. We currently use Google Cloud. It's cheap and convenient enough. Our spend is only 300 euros/month or so. I could replace it. One of our customers insisted on Telekom Cloud; so we support that as well. I've used Hetzner in the past. There are a few other providers. It's not that big of a deal. But it's not a big/urgent issue for us.

However, Vms, object storage, elastic load balancers, managed databases, etc. are all commodities at this point. You don't need to pay AWS 2-3x for that. They aren't magically any better. They certainly aren't any faster. AWS squeezes hard on those VCPUs.

And there's a lot of exotic stuff that some people use. AWS is offering lots of that. But most of those things are a combination of a bit niche and very pricey and more aimed at enterprises than startups. When it comes to GPU hosting, AI stuff, etc. the premium options that Amazon offers really add up really quickly. I'm sure it's fantastic. But many people I talk to in Europe use alternative/cheaper solutions.

For bread and butter hosting, AWS is just expensive and overrated. Big companies don't seem to care much and are sensitive to big brands and the warm fuzzy feeling they get from expensive consultants telling them what to do. And AWS is very good at vendor lock-in. That's also why IBM still exists and why companies like Oracle still do a brisk business separating rich clueless enterprises from their cash. Vendor lock-in is all they have left at this point. But those are at this point the idiot option. AWS is increasingly like that. The times are gone that they are a sane solution for startups. Ten years ago they'd lure you in with "free" hosting for a year and then you'd be hooked for the life time of the startup. But it's not that obvious anymore that is a good choice for cash strapped startups.

Btw. Hetzner now operates in the US. It's a pretty good deal there as well. It's not like you have to give your money to Amazon.