This is called "digital sovereignty", and it has been a major topic for OpenInfra foundation and other open source cloud foundations. Open source, and open cloud software, is the way to ensure your data can stay inside your own borders and be governed by your local laws. https://www.youtube.com/watch?v=Lvz2PcHq0yY is one example of folks talking about this, but realistically you can find talks from OpenStack/OpenInfra going back 4/5 years on this topic.

I love this. digital sovereignty sounds so cool too