Easier said than done for a country that size, but I always think it would be amazing if Finland could band together with a couple dozen or so other European countries to form some kind of cooperative Union that would allow the creation of this kind of project. I also imagine that if such a thing did exist and you were a part of it you'd have to be a complete fucking dickbasket to leave it but that's neither here nor there.

Hosting with close allies shouldn't be a problem.

Within the EU, I still don't care in which country the data is hosted