I can understand why you would say that after the big fight with Microsoft. What if Amazon makes it so the only employees with keys to be able to decrypt data in that region, live in that region. I think that could be the failsafe right there to where even if the government says "hand over the data", Amazon says "we can't and the only people that can are Citizens of xyz and we can't compel them to break the law of their home country".
I'm not saying that is what they are doing but it would be a very interesting strategy.
You can bet there will be some bs charges like obstruction of justice or whatever and it might even fly depending on how much of an asshole the judge is...
What if the company was Enron 2.0 and was keeping their tax records and other incriminating emails on a server in another country that was under the control of an American company? Should the US justice system just accept it is outside of their control, or pursue the American company to turn over material in their control for the case?
That would depend on the law about "where should an American company store its emails". If they are not allowed to store stuff abroad, then you can throw the book at them regardless of whether you get those emails or not.
Like for tax evasion vs tax avoidance, law enforcement cannot complain that individuals and companies use rules to their advantage, they just have to make smarter rules.
I'm not saying that is what they are doing but it would be a very interesting strategy.