This legislation would mean SFA in the grand scheme of things, I expect when a European tries to take the US to court, they would just get a gag order and told to pay the court costs, you unclean peasant.
Plus if M$ already has data centres in Europe, as per the recent court case in the US where they told the judge to take a leap, it can't be too much harder to make sure the EU traffic goes to the EU data centres.