Big Blue surely has clever enough lawyers to come up with a corporate structure that works here. They probably just need a foreign subsidiary in each country they want to do business in and have that subsidiary completely own and control its data centers. If you're a German company your data is and stays in Germany and would be subject to German law (which according to Snowden may not mean a much for privacy).
I wish I could find the HN comment from a few months back addressing the same idea. If I remember correctly there was consensus that the US govt has enough legal power over American corporations to force their hand with even independent international subsidiaries. As stated earlier, I wish I could find the previous thread covering this.
