what are the regulations on things like health records, personal information, etc... stuff that has tight restrictions on how the data is handled. Can these types of data be stored on Amazon or similar services and still be in compliance of data protection laws?
For health records the regulations are a bit of a confusing mess when it comes to cloud storage. Basically, it boils down to "whatever your organization's legal team says". In theory, if data is encrypted in transit, encrypted at rest, and access is limited/logged, then it should meet US HIPAA requirements. However, that may not be enough to satisfy a particularly conservative legal department. There are also nuances about who holds the encryption keys, how are they managed, etc... Notably, Amazon won't actually stick their neck out and certify AWS as HIPAA compliant through a business associates agreement (interestingly Microsoft will for Azure: http://www.windowsazure.com/en-us/support/trust-center/compl...). I've been told by consultants that Amazon has so much business it's just not worth their time to bother with the headache of setting up such agreements.
Depends on a variety of factors including which regulations are governing the data. Some privacy laws require such records can't leave the country in which they're obtained. Other records have strict rules about disposition or "destruction" of the record. It's a complex field and wide open with questions.
From courts to records managers/custodians everyone is still trying to understand those questions. In my experience, when in doubt, big business decides the safest legal answer is "probably not".