I don't see any conflict in having data stored on US-based servers being subject to US law. If you put physical goods in a 'self-storage' warehouse, your goods are subject to the laws of that warehouse's physical location. Why would data be any different? The key is to do your research up front and find out where you're putting your information and what laws apply, the same way you would if you were shipping physical goods overseas.

Would someone explain to me the difference between 'private cloud' and the traditional client-server model?