I agree. Beyond scale and inertia against moving (and frontier AI models) it’s not obvious to me what would be hard to replicate in Europe given regulation that mandated non-US hosting.

Most companies using hyper scalers are doing weird superstitious things at the behest of overpaid consultants. And the huge margins they take make it easier to adapt to things like higher electricity costs.

It’s technically possible, but would face too much resistance. People don’t want to leave familiar and cheaper services, and care less about the non-immediate issue of European sovereignty.