I noticed many privacy focused apps make a point of selecting which country their servers and data is stored in. Why is this and is their reasoning valid? For example this article compares the cloud storage providers IceDrive and pCloud:
Icedrive offers a single storage location — the UK — while pCloud lets you choose between the U.S. and Luxembourg. While there are many examples of the U.S. being terrible in this regard, whether it’s PRISM or the Patriot Act, the UK isn’t much better since the passage of the Investigatory Powers Act in 2016.
However, pCloud’s alternative location, Luxembourg, is far better. Being located in the EU means your data is protected by GDPR regardless of your nationality, and Luxembourg has solid privacy protections in general. That said, Icedrive also complies with GDPR, even if they might not be legally obliged to do so in the future.
Also in this review the Trust.Zone VPN Service claims
If we receive any type of DMCA requests or Copyright Infringement Notices – we ignore them. Trust.Zone is under offshore jurisdiction, out of 14 Eyes Surveillance Alliance. There is no data retention law in Seychelles
Does the legal jurisdiction of the servers or data storage of an online service affect the security or privacy of the service in anyway?
TL;DR does it make sense that an app that has servers in the US and stores my data in the US is less secure than if it stored in a country like Switzerland?