Even as a US citizen... fuck that... it'd be like saying the US should open its' data up for China without any restrictions at all, even if they are slurping up everything they can as a state actor.
While, if you choose to use a US service, it shouldn't be required to host data in your country, if you know it's a US service with data in the US... government data is another thing entirely.. and $cloud provider should be required to accommodate if they want that business, or for companies in a given country for that matter.