I don't know about the UK, but AWS has has GovCloud in the US for a long time, and to be honest compared to a lot of infrastructure I have seen there it's a blessing. On the flipside, I've met some really amazing infrastructure and ops people in a German gov healthcare institution running the in-house DC, where the problem was neither the tech, nor the people, but 100% the management and their processes, and their desire to be the bottleneck for every single interaction between infrastructure and engineering teams.