Thus is probably more about the EU having access to eu data than not having the US have access to EU data. Also it’s not like it’s impossible to encrypt things when you store them? This article is more political than logical or technical, it’s unfortunate that government control / intervention in the free market to this degree can be spun into something positive.
I work in energy now, and we host stuff in AWS. So far so normal.
However, with the tubthumping about invading greenland, We see that america is willing to evaporate any system that gets in the way of the sun king's world view. Sure, he says now that "we were never going to invade" but given the way you've all just given up your 1st, 4th, 10th and now 2nd amendment, we're not really that sure.
This means that when the next recession happens and the EU is busy competing, he'll ask "hey we subsidies the EU by getting them to pay for AWS, why don't we turn it off?" I mean that sounds far fetched, but so did unrelated personally controlled federal militia roving around states disappearing US citizens without trial.
tldr: you're damn right its about politics. He threatened to invade an ally, we aint hanging around to find out whats next.