One of the reasons self-hosting is not sustainable in Germany is that electricity is prohibitively expensive for non-industrial purposes. If you run a service company and do not own a data center, you pay more for the electricity than the equivalent in token costs overseas or in China.

I think since electricity costs are the most important facet of the margins, and the cheapest electricity source is solar, this means the largest inference providers will run massive photovoltaic parks.

You still can use EU-Hosted Opensources models like from Tensorix.