The fear is not "NSA is snooping on our customer data", it's "Trump has a beef with our premiere minister/president, and Jeff Bezos accepted Trumps request to turn off AWS from them" that's the fear.

We're far beyond the default assumption that NSA snoops on absolutely everything, and more about protection ourselves from trade wars, tariffs and similar blockages as what Microsoft did with the ICC.

Compelling Microsoft to turn off your Office 365 at least requires Microsoft to be complicit. Sovereign infrastructure didn't protect Venezuela or Iran.