The EU does not require data to be hosted locally, though.
Do you have any source for that ? it would n’a quite helpful, honestly.
It’s not quite data sovereignty like India’s regulations around payment transaction data but it does theoretically limit where you can store EU personal data.
You can find the current GDPR adequacy list at the EU’s EDPB site. https://commission.europa.eu/law/law-topic/data-protection/i...
Source: GDPR articles 44, 45, and 46.