Police show up and arrest you. Could be with reason, could be by accident. Maybe you did something wrong, maybe you didn’t. They also physically size your servers, and in doing so they unplug the system.

If you have disk encryption, your data now requires the police to force you to produce a password, which may or may not be within their powers, depending on the jurisdiction.

It’s strictly better to have full disk encryption and remote unlocking than no disk encryption at all, because it prevents such „system was switched off by accident“ attacks.

>and in doing so they unplug the system.

They have kits that allow them to unplug the server from the wall without interrupting power supply, specifically so they don't lose the decryption keys.