This data is unlikely to contain anything sensitive and not really a prime target for tampering. So cloud components taking advantage of colocation with peering points are, for once, a perfectly viable component. As long as they can provide the reliability needed by the provider/consumer systems and they don't upchuck due to servers being live migrated behind the scenes.
Point taken as to managed services forcing unwarranted and sometimes dangerous upgrades. But you can always rent bare metal at one extreme, or something a little less bare but less subject to churn. There are a lot of providers with a diversity of offerings.
As far as leaking it to enemies... if an adversary really wants the data they could do so more easily by compromising an authorized consumer's system. If they don't want it bad enough to put in the effort to do even that, consumer account security should be sufficient.