Clients can choose which region their data may reside in, and at no point will data in that region be transferred to another region (such as America or APAC and visa versa).
The only time data will go to America are under the following circumstances:
• The organisation asks Microsoft to store the data in those locations (this is not by default)
• If a complete sub-region DC (Dublin) failure occurred the organisation will be given 2 option:
a. Leave data in the remaining sub regional DC (i.e. Amsterdam) OR
b. The organisation makes the decision and tells Microsoft to replicate data to a US region.
Please make this clear in any meetings you have with clients, if they raise this question.
Microsoft articles here:
Office 365 allows organisation to explicitly say which regions
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