If the customer base has lots of US enterprise customers, that choice will cost you money. Ex-US data residency is an issue for many compliance standards.
Isn't that the same vice versa? Sure, if the majority of the customers sit in the US _and_ care about that: Fine. Otherwise I felt that the online community rather likes to avoid the US for data if that is an option.
(I'm from Germany, but I couldn't care less about the country per se or GitLab being co-located in Frankfurt)