To where? Anything overseas is stated as fair game for the NSA. They at least <i>pretend</i> to not watch American activity. Any other country will cave to US pressure if they want your data, and of the countries that don't like the US and still have a decent internet connection, they'll probably do worse spying of their own.
I work with companies that do this pretty regularly due to other regulatory issues. The problem involves how poor data privacy laws are in other countries, in some places data is more illegal than others, and then how its accessed from the US. Sometimes you're not better off in other countries anyways.<p>Right now the problem is "the cloud" not the country for the US anyways...
The main issue is latency and cost. Try browsing the internet from New Zealand or Australia for a few weeks: you really notice the difference of being another 150-200ms away from servers in the U.S. If you'd like to host in those countries directly you'll be subject to higher bandwidth costs.
I've always been surprised so many companies have their servers based in the USA.<p>Iceland seems a safer place to me from a democracy standpoint.