The feds are being hoisted on their own petard somewhat here, having long argued that a foreign person's data held on a US server is subject to US jurisdiction. The logical corrollary to that argument is that data held on an Irish server is subject to Irish jurisdiction.
It is standard practise for companies in Europe (e.g. the bank I'm consulting for right now) to ensure that, when they subscribe to cloud services, their data is held stored and processed in datacentres within the EU, so that it is subject to EU legislation and, hence, the EU's data protection laws.