Yeah, that's half of the truth, i work in enterprise IT with big datacentres and hosting providers, NO WAY the portion of compute and storage was not geo-redundant, if you know how a datacentre is planned, designed, and built, you know that this wont' make the lose any bit, probably is that they have been told to declare everything gone by someone, and that the disks have been taken away.

Depending on the contract you have, they have no obligation to backup your data, for that either you do it, or you buy another service that does so, but still, they do have backup for a X numbers of reasons, within which you have forensic, national security, legal coverture, and much more

Plus there are companies specialised in data recovery that can recover data from physically broken or burned drives, puzzling them together, then with dedicated machines they can read data in different way, via EMF / magnetism laser and other stuffs

But still, something like this doesn't happen by mistake in a building worth millions / billions of euro