Privacy is a human right in the EU.

Having the datacenter that stores your data in another region does not affect your privacy in any way.

That's wrong. A data center in the US can be forced to hand the data over to the government. And that's not the only protection you lose.

It's very naive to think moving the datacenter to the EU makes it impossible for American agencies to data off it.

I never made any such claim that it would be impossible. Your initial claim is still wrong.

Moving the datacenter to the EU makes it a crime; we can at least impose diplomatic sanctions as and when we catch foreign spies doing crimes in the EU. If the datacenter is in the US then there's no recourse.

That's exactly why the privacy shield was invalidated by the CJEU.

The EU member states are responsible for protecting various rights of their citizens and they can't do that if the private data is placed in a uncooperating jurisdiction.

Clearly EU judges disagree with you.

It does if US government can take that data. Which they do.