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Discord has shut down the Discord servers for the Nintendo Switch emulators Suyu and Sudachi
(www.theverge.com)
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If you think this wouldn't have happened with another hoster where you just rent a root server and use some free software on top of that you don't understand how the legal system works.
Do you think the entire world is under US laws? Besides, with FOSS services, you get the option to backup and migrate the data. Do you get that with Discord?
Do you think Copyright law doesn't exist outside the US? Obviously there are some countries where you might be able to host things of this nature but at that point we are not talking about the kind of software you host.
Just that Suyu isn't doing anything illegal or against the law. Emulation is legal. Also reverse engineering if it's done right in a lot of countries. What discord did here wasn't because of the law but because they are feared of Nintendo being mad at them.