Hosting LimeLM on your own servers is possible (and expensive -- roughly equal to the cost of the Max LimeLM plan).
We plan on adding exclusive EU servers to our offering in the very near future (before the end of 2017) in addition to our U.S. servers. This will ensure countries in the E.U. can comply with the newer regulations.
Right now everything flows though our U.S. servers. The improved offering will have an option to only do communication through E.U. servers. (No data transferred through or stored on US servers).
Also, realize right now the activation data is not user information (it's a non-identifiable hashed fingerprint of the device). Meaning the "fingerprint" cannot be linked to a real user. You can of course choose to store more customer information in the form of custom license fields, but that's not the default.