Yes it does, because they can compel the company employees. A previous company that I worked for used to have data centres in Amsterdam and Sydney (pre-cloud), but it was an Australian company with Australian engineers, so it wouldn't matter very much in this context.

It's the old xkcd "million-dollar cluster to crack encryption VS wrench"[1]

If you or your engineers with production access live within a jurisdiction then your security and laws are impacted by that jurisdiction.

[1]:https://xkcd.com/538/