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Yeah, US is only for cloud products at the moment

Correct. This is the only reason.

I was more going for "why physical" and "why in the US" :)

We are an SaaS provider and customers demand to be hosted in US for various reasons

(a) They think they will get better performance/latency (although in our application it does not matter much) (b) For various compliance

We had been using co-location so far for US but we don't want to continue this road because of high investment (especially when compared with Hetzner) and higher responsibilities (hardware issues, inventory).

I suspected it might have to do with [perceived/actual] 'compliance' needs

I've heard of Server Mania (https://www.servermania.com/dedicated-servers-hosting.htm)

Not sure if they might fit the bill?

Of course, there are several cloud providers who could likely slot-in for you (Vultr, Digital Ocean, Chunk Host, AWS, GCP, Heztner, Azure ...)

I know Hetzner doesn't have physical servers in the US (yet)

This was more a question of "why physical" and "why in the US" :)