That sort of rubbish is exactly where all the hysteria comes from when people start talking about cloud services. Its a completely different topic to what this thread is about, so ill only digress a minute.
Quite frankly, i would imagine the risks of a break in and servers being stolen would be FAR higher on your own premesis, than in a data centre that MUST use best practice security standards. Its all about due dilligence which ever way you look at it.
enough off topic from me.