I'm surprised that Frank Karlitschek is surprised about "the espionage factor". Data sovereignty has been a concern for a long time although maybe not as prominent as it should have been (i.e. not prominent enough for governments to take much action). It should still be a factor in a post-Trump world.
Along the same lines I find "Vultr, an American-based company with datacenters worldwide, has seen an uptick in interest in sovereign infrastructure" a remarkable statement. Can a US company provide infrastructure which is sovereign for any country other then the US?
At least people are waking up to the significance of "It's somebody else's computer you don't control".