depends on where the user took-out their agreement with microsoft.
If they took it out in the US, then the user agrreement is with Microsoft Inc. based in redmond WA, therfore where they chose to store the data is of no consequence, it is within the remit of the US court.
If the user took out the agreement outside the US, they contracted with microsoft International which is an Irish company headquartered in dublin, and the data is subject to eu law and the juristiciton of irish and eu courts.
in the first case MS have no leg to stand on, in the second, DoJ have none.