The EU has a law that said you must treat data of their citizens with respect. Fine, that's great. Any business that has a presence in the EU will need to follow that law. At that point, why does it matter where the bits are actually stored? Can the EU for some reason not enforce its privacy laws on Uber if Uber keeps its data somewhere else?
Conversely, if a business has no presence in the EU, can the EU enforce its data location laws on them?
The only thing that seems to matter for enforcement is where the company is located, so I'm really unclear what data location has to do with anything.