This is not a change. It has been asked since the advent of GDPR. So nearly 10 years.
In some cases but not enough. Some of us has been doing a lot to help educate companies and business here and with the current administration - and the fact that they are being explicitly backed/funded by the Silicon Valley tech companies long resisted government overreach - have helped to finally open ears in boardrooms to the dangers of the Cloud Act and other leverage.
GDPR gave us "oh cool AWS has eu-west-1 and pretends to comply so we can also pretend to comply" but I think the tone has shifted to actually caring, at least a little bit. And with the CLOUD act all the US based hyperscalars can't really offer compliant hosting.
GDPR is a bureaucratic annoyance. Trump is an existential threat.
It started 10 years ago, but have def escalated the last year IMHO.
Im sorry to say it, but i feel a lot of Europeans have lost a good deal of trust in the US.