This is for businesses which have regulatory requirements that they store data in-state. State governments don't like it when certain data is stored out of stat

This is for businesses which have regulatory requirements that they store data in-state. State governments don't like it when certain data is stored out of state. They like the idea that they can just dispatch their own police to seize the required records from the server rather than needing to ask for the cooperation of another government and its own police force. I know specifically its popular in the regulated gambling and insurance industries.