I think a lot of commenters here are missing the ball with the idea that this is a foreign policy or anti-US sentiment emerging.

The core reality is that cloud infrastructure is becoming commoditized, and substrate-independence is becoming not only possible but the default. So companies looking for things like lower cost or better customer support are looking around and seeing that smaller rising competitors are going to be a better option. Compliance with local regulatory regimes are going to be a factor as the EU continues its efforts to push European companies towards using EU infrastructure.