We are an SaaS provider and customers demand to be hosted in US for various reasons
(a) They think they will get better performance/latency (although in our application it does not matter much)
(b) For various compliance
We had been using co-location so far for US but we don't want to continue this road because of high investment (especially when compared with Hetzner) and higher responsibilities (hardware issues, inventory).
This was more a question of "why physical" and "why in the US" :)