It's not necessarily more secure than managed providers either, simply because you are probably not a security engineer, and have far less resources to secure your server. It does prevent Google/iCloud from scraping your data, but it certainly does not mean Hetzner can't access your data. They control the overarching hypervisor and control plane managing your servers/VM's, so there's no way to know what capabilities have been implemented. The majority of what intelligence agencies are capable of has not been leaked or documented publicly.