Off site backups, executed masterfully here saves the day.
There are a few services that I run on servers in separate countries. Failure of reasonable rule of law within a single country is a failure mode we consider.
What would happen if the police shut down entire city blocks because one business in that block was breaking the law?
A 2008 post by a libertarian law professor (http://volokh.com/posts/1209706276.shtml) argued that the Takings Clause (which requires compensation if e.g. land is taken to build a highway or military base) should also require the government to pay compensation to innocent third parties inconvenienced or harmed during the course of a criminal investigation. But, that post noted that no high courts had actually held that, and at least one appeals court had just held to the contrary.
This is in the normal case, at least; things would probably be different if it were deemed to be some sort of overt act, e.g. if a police chief orders a raid designed to intentionally damage an innocent third party's interests (and you have evidence to show that).
All those costs would dwarf the cost of building a fault tolerant architecture from the start. Having a distributed architecture protects you from random law enforcement activities, power/communications outages, or even just glitchy hardware. Not only that, but it offers the advantage of built-in scalability should your business exceed your current capacity. Unless you have massive amounts of legacy infrastructure, data, and code which makes it cost prohibitive to migrate, it's really cheap these days to have a proper distributed architecture from the start.