Where is Xero data stored?

I ask in light of the recent decision by the IRD that storing your primary business records on cloud services outside New Zealand is an offence under the tax administration act:

http://www.ird.govt.nz/technical-tax/revenue-alerts/revenue-alert-ra1002.html

Alternatively, does Xero have a plan to address this? I've been considering moving away from MYOB which costs a fortune and obviously if there's question about the legality, that'd be a dealbreaker for me.