This is the reason why Microsoft built Canada Central and Canada East data center for Azure.Originally posted by suntan
And yeah, I get that the authorities can get information without a warrant. The concern with a lot of clients is that the Patriot Act is so sweeping, that their information can be released even though they had nothing to do with whatever the concern was, whereas with current Canadian legislation the boundaries for warrantless information retrieval is specific and limited.
And good thing US government lost the Microsoft Ireland case, otherwise having local data center by a US corporation won't matter.