Unironically, yes. I don't know if you're trying to make that scenario sound ridiculous, but I can assure you that it very much is not. At least outside of the US.

It's not everyone at the moment, but the IT people who are paying attention are freaking the fuck out. I legitimately think Microsoft, AWS, and GCP will lose substantial market share overseas in the next 24 months.

Consider that much of the rest of the world has started trusting China more than the US. Now think about the US CLOUD Act. What person in their right mind is going to feel comfortable hosting their company's most sensitive data within jurisdictional reach of whatever the fuck is going on over there?