Security... not against hacker but against provider's government.
I worked for some french or european companies, with IPs and sensitive informations, and US business competitors. By the US law, US companies may have to let the US gov spy on their customers (even non US, even on non US location), so this may be a problem for strategic sectors, like defense for example.
In that case, sensitive informations is required to be hosted in country by a company of the country, under the country law.
Of course, it's not against "cloud" in general... only against US cloud providers (and chinese, and...)