The EU is worried about Trump being unpredictable, so they are pushing hard for sovereignty. See their initiatives to leave US clouds. This decision is completely in line with that strategy and, probably, also what the US military expected to happen.
The pressure to leave US controlled cloud providers actually started way back with the US Cloud Act. I’ve been surprised that that process has been as slow as it has been, especially for the public sector and adjacent services.
> I’ve been surprised that that process has been as slow as it has been, especially for the public sector and adjacent services.
Europe can't seem to get a tech sector bootstrapped no matter what it does and European governments seem to be much more comfortable with the USA having full access to everything they do then risk running on a EU cloud.