Another way to think of it: AWS Stockholm is a pipeline to navigate Sweden regulation/laws/banking to funnel money out of there. The core is still American/controlled in America. Otherwise, people would have just hosted in a Swedish hosting platform.

Swedish power, Swedish backbone, Taiwanese chips and boards, and an American control plane.

But yes you're right, it's an American service offering that I for cost reasons and I avoid big cloud like the plague. USA surely knows how to charge for their services and lock customers in