Regardless of the risk of seizure from law enforcement, I feel you should fully encrypt any remotely hosted servers. There are plenty of examples of datacenter techs being socially engineered to install backdoors, affecting both colo and dedicated. Had it happen to myself with an old server - they called up with some excuse and were able to completely bypass the 2FA in the control panel I thought I was secure with and have the techs disable pubkey authentication and reset the root password.

Yes, the situation is very different. Germany has the strongest privacy laws, Netherlands is practically a police state like the UK, and the French are at war like the US, with special police powers.