I love this debate. Imagine if this was the other way around. If a European (or for that matter any other country) asked for US based data. In my opinion, this could have terrible precedence.

 
Microsoft tells US: The world’s servers are not yours for the taking
http://arstechnica.com/tech-policy/2014/12/microsoft-tells-us-the-worlds-servers-are-not-yours-for-the-taking/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+arstechnica%2Findex+%28Ars+Technica+-+All+content%29

 
Great work by the writer on this one.