> You can also create reasonably diversified data silos within a country.

I generally agree, although if a small country only had half a dozen or so redundant data centers then it would be relatively easy for a powerful adversary to wipe out all of the data centers and potentially have a significant economic impact on that country.

Having a backup data center in an ally country might make sense. Kind of like how I keep an encrypted backup hard drive at my parents house. Whenever I go to visit I pull it out and backup my laptop there too.