But if an American visits a foreign country, they and their property are subject to the laws of that county. We expect the same of foreign visitors entering our country. And if that foreign countries data protection laws differ from those of the USA, they should still be honored.
Having some foreign government insist on the right to root around in their citizens possesions while in this country, either as a tourist or a refugee would open up a human rights as well as an intellectual property can of worms. Imagine an H-1B worker's home country insisting on receiving copies of all of their work product while employed here.
But the criminal in question didn't visit Ireland and leave his data there. Microsoft didn't visit Ireland, either, but it did send the data there. Also, this is not tangible personal property. It is a bunch of electrons.
As for the H-1B worker, that is a strawman argument and has nothing to do with this. Here is a concrete example of what is going on here. I steal a painting in the US and send it via FedEx to Amerstam where it sits in FedEx's hangar waiting to be picked up. The feds arrest me and ask FedEx to send the painting back for evidence. Should FedEx say no, because it is now in their possession in a foreign country? Before you answer, the courts have already answered it and said yes, FedEx would need to return it as long as it is still in their possession.
Or, lets say two child pornographers both store the pictures they have taken in the US (so US law is broken) on Google's servers and one of the pornographers pictures happen to reside on a server under Google's control in Ireland and the other on a server under Google's control in the US. Is guy who had the luck of his data being routed to Ireland off scott free while the other guy goes to jail, when both of these accounts and servers are under Google's control? While the courts haven't answered this question, they have done so with banking and found that US banks must still turn over seized assets of US bank holders even if those assets are now held in foreign countries. Most other countries also have the same laws, too.
So, the question really is whether or not a criminal should be able to use a US company to hide it's data just because the US company has a server farm somewhere other than the US?