I *personally* have a freaking orchestrator, mail server, git server, faster than rocksdb DATABASE ENGINE, freaking world of warcraft and faster than NGINX for static. It's cute that you think you have the capabilities to imagine what Europe can or cannot do.
We've got plenty of servers, electricity, network hardware and people who code. We are missing the oxygen in the room, which American services all collectively sucked out. Banning those services will open some potential for innovation.
I think what your missing is a regulatory framework that wont immediately screw you. Just look at how far behind you are with AI. AI is nascent so you have no excuse about "oxygen" or whatever.