What could happen if my Web host is in another country?

About foreign Web hosts

Most of the time you don’t need to worry if your Web host is located outside of the United States or not. There are situations, however, in which this could be a concern.

If you store sensitive data on your website that is not allowed by law to be exported to other countries, you could be in violation of federal law. If you need technical support, you have to keep the time zone difference in mind. If the country’s laws change and the material on your server is deemed to be unlawful, then it could be taken down, even though you reside in the USA. And if someone breaks into the facility where the server housing your data is located and steals equipment, you won’t have the same legal recourses as you would in the USA.

In short, be aware of what data you have, and be sure that if something drastic occurs, you can still access a backup of it.