Microsoft has been keeping data offshore in Ireland, and that's fine. In an ongoing New York court case, the state desired information from Microsoft regarding a customer, and Microsoft rebuffed. A federal ruling upheld the legitimacy of Microsoft's right to keep data outside the United States private. Expect to see many corporation hold data outside the U.S.

Source: https://techcrunch.com/2016/07/14/microsoft-wins-second-circuit-warrant/