Except the hardware is purchased using a global framework contract that uses the volume as a reason for deep discounts.
It gets put in a rack by a local guy and then remotely provisioned by some person from a low cost country.
Electricity in datacenters is purchased at wholesale prices and muchuch cheaper than what consumers pay…
The list goes on and on.

The higher prices in countries has only very marginally to do with the higher costs.

Money grabbing corporations will charge what the market will bare.