Every time this happens Microsoft either threatens to move out or promises to move in with a chunk of their operation. Blackmailing with jobs has been very effective for them.
I think that strategy might be running out of steam though, before these projects seemed to have more commercial reasons or just pushing the idea of openness, but sovereignty is a much stronger ideal and much more likely to be the one that will weather the blackmail.
And the more important thing is just how much damage those lunatics can do through Microsoft using American laws -- even current ones, much less new ones. Microsoft would be a mostly helpless puppet in this entire exchange; a cat’s paw, as it were.
Yes, given how fast Amazon and Apple rolled over it's clear they don't stand a chance. It's not like they can teleport Seattle out of the USA if they had to.
I wonder how big a fraction of the US tech and Military industry realizes that Trump is killing their business for the next century.