BBC News has reported the following story (http://www.bbc.co.uk/news/technology-27191500)

A judge in the US has ordered Microsoft to hand over a customer's emails, even though the data is held in Ireland.

The company had attempted to challenge the search warrant on the basis that the information was stored exclusively on computer servers outside the US.

This is going to be a very very interesting test case that will clear up a lot of confusion that is rife in the IT industry around Cloud Computing as a whole on whether your data is "safe from the US Government" being hosted on European soil, even though it is controlled by a US company.

I look forward to following the outcome.