The first I heard of this issue was back in the 1980s when the Government of Canada wanted banks and companies to store data within the country and not in the US where it was cheaper. One of the arguments was the need to simplify access to data for law-enforcement purposes. Technology has changed much, but the issues remain the same. Now it’s the United States Government that wants access to data stored by US companies wherever the data is. Russia wants all companies operating in Russia to store data within Russia. US wants extra-territorial jurisdiction over data. Two sides of the same coin.
. . . the Justice Department is engaged in a court dispute with another tech company, Microsoft. The case, which goes before a federal appeals court in New York on Wednesday and is being closely watched by industry officials and civil liberties advocates, began when the company refused to comply with a warrant in December 2013 for emails from a drug trafficking suspect. Microsoft said federal officials would have to get an order from an Irish court, because the emails were stored on servers in Dublin.