> If the servers are on the island, my understanding is that they'll be fine.

Taiwan doesn't have a huge data center capacity. A lot of services are in Hong Kong, Tokyo, Singapore, etc...

Of the big clouds e.g. AWS is only opening a data center later this year.

It's also not so simple. Even local servers / services might have all sorts of "needs" to phone "home" elsewhere e.g. for analytics. A lot of software might not have been tested and will crash. Even the big clouds might not work in isolation.

Then there's also things like patches, updates, firmwares etc. A lot of things like kubernetes clusters may be set to auto update and crash. If you need a docker image the local CDN didn't cache then it is gone.