It is worth emphasizing an aspect of your point when you mention "compliance regions"- this does not necessarily mean geographic regions or different countries.

It is worth emphasizing an aspect of your point when you mention "compliance regions"- this does not necessarily mean geographic regions or different countries. This setup is how every company I have worked for that has had government clients handles them- a dedicated 'footprint' isolated from your commercial footprint, even if it remains on the same cloud provider. AWS even has GovCloud regions specifically for this scenario.