I just got a letter stating:
We are excited to announce that we have extended Amazon Elastic Compute Cloud (Amazon EC2) to Europe. Developers and businesses can now run their Amazon EC2 instances in the EU to help achieve lower latency, operate closer to other resources like Amazon S3 in the EU, and meet EU data storage requirements when applicable.
We are looking for a good solution for scalable hosting and were thinking of going with Slicehost, but this changes a lot for our project, as we will target both Europe and the US.
A quick view on Pricing, says it is +10% in Europe in comparision to the US. I bet I will write more on this.
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There are a few VPS providers that offer servers in the UK.
Pricing there is likely going to be a bit more than in the US. e.g. we have servers colocated in London and Dallas (plus a few other locations). London colocation costs us about twice as much as our (very excellent) Dallas colocation provider. We use our regular server builder so our hardware costs are not that much higher (give or take a bit of air freight).
Good luck with finding a good host!
Peter Bryant
http://rimuhosting.com/servers-where-you-need-them