If those employees were working in a vacuum, then sure, but in reality they are not.
Employees have bosses and those bosses have bosses, and those bosses have bosses in the US. If not direct bosses, then at least people higher up in the context of all of Microsoft, who can pull strings, criticize them, categorize them as unreliable, and make their life hard, or even bring into motion that they are made to give up their position or are let go. Most people don't want a hard life at the job and be bullied. It is likely, that people joining Microsoft don't have the strongest moral compass anyway, so them sticking their neck out for European data protection, and losing what comfy life they have, including probably exceptional ...
Company politics are not to be underestimated. The question becomes who selects and vetoes higher ups in those sovereign clouds.
European governments cannot trust US companies, even when they have inner-EU parts, because influence from the US cannot be rules out.
Employees have bosses and those bosses have bosses, and those bosses have bosses in the US. If not direct bosses, then at least people higher up in the context of all of Microsoft, who can pull strings, criticize them, categorize them as unreliable, and make their life hard, or even bring into motion that they are made to give up their position or are let go. Most people don't want a hard life at the job and be bullied. It is likely, that people joining Microsoft don't have the strongest moral compass anyway, so them sticking their neck out for European data protection, and losing what comfy life they have, including probably exceptional ...
Company politics are not to be underestimated. The question becomes who selects and vetoes higher ups in those sovereign clouds.
European governments cannot trust US companies, even when they have inner-EU parts, because influence from the US cannot be rules out.