Consider this simple example: Storing all your sensitive user data in one centralized location (e.g. a US server) would be great for any kind of analytics and modeling to tap into, and is technically very easy to do, but it also violates virtually every country's data privacy laws. So then you have to set up siloed servers around the world, deal with data governance, legal stuff, etc.

Sure, it then becomes a technical challenge to work around those limits, but that may be cost/time prohibitive.

That sounds more like, that you can solve the problem, when it would have other requirements.