It'll be interesting to see what happens to those global (US-based) cloud providers whose business strategy of poor profit margins in exchange for reduced costs of sale fair after this PR catastrophe. When it comes to the economics of this, the US is going to lose a huge amount of business due to this and potentially could in theory cause several businesses to go bankrupt. Since, government's are naturally fiscally m…
..it already is. E.g. german companies with a data protection comissioners/officers usually don't store data outside EU coutries, since the data protection level is considered to be to low. §4b Abs.2 S.2 Bundesdatenschutzgesetz prohibits conveyance of personal data outside EU borders if the interest of persons concerned outweighs it (mostly it does). This PRISM-surveillance substantiates those concerns.
But, frankly, I don't know how Amazon would respond if they received a national security letter asking for data hosted by Amazon in Ireland.
It'd be nice to see a country take a very strong stand on data privacy. They could be to hosting servers what Switzerland is to hosting money.