This is a question that Michael Geist asks in his blog, and I have problems with the focus of this article. The suggestion is that the physical location of where the CPU, RAM and hard disks data is stored on should be our primary concern.
The primary concern should be who controls the software authors who write the software that accesses and manipulates our data. While there are a narrow set of circumstances where geography of the hardware matters, the reality is that we need to be able to trust the vendors who write the software running on computers physically located close to us as much as we do cloud software services.