Not sure “sane backup strategy” and “park your whole government in a private company under American jurisdiction” are mutually exclusive. I feel like I can think of a bunch of things that a nation would be sad to lose, but would be even sadder to have adversaries rifling through at will. Or, for that matter, extort favors under threat of cutting off your access.

At least in this case you can track down said officials in their foxholes and give them a good talking-to. Good luck holding AWS/GCP/Azure accountable…