Does anyone actually care where their AI requests are processed?

We're building an AI gateway in Stockholm and launching here soon. One thing keeps surprising us. Developers say they don't care about data residency, then their B2B customers ask about it in every procurement call and suddenly they do. So we made EU data residency the default instead of an enterprise add-on. Curious what this community thinks. When you pick AI infrastructure, does the region ever factor in, or is it purely latency, price, and model access until a customer forces the issue?