A non-US server is one that routes DNS requests to a country other than the US. This can be used to get around a site or app’s blocking of a certain region. A non-US server can also be used to bypass VPN blockers. A non-US server can also be a proxy that collects user data, which may not be ideal for privacy purposes. Check this out :yrahosting.com

Non-US Server Hosting: Protecting Your Content Beyond Borders

Although there are many benefits to utilizing a non-US server, the Internal Revenue Service and some courts may consider these servers as an extension of a foreign company’s business in the United States. This could lead to the recharacterization of foreign income as domestic service. This is similar to the Piedras Negras case in which the IRS considered the location of broadcasting equipment.

For these reasons, the majority of tech companies prefer to keep their ITAR technical data in the United States. This is usually done through email exchange servers and file servers for ITAR-controlled data. However, a license would need to be obtained for the foreign parties that have access to this information if it is stored on servers outside of the United States. The cost and complexity of obtaining this type of license makes keeping a U.S. based server a very attractive option. In the future, the US export licensing requirements may change to allow for some cloud storage, but this would likely be very limited in scope.