I think you have most of this backwards. Redundancy is one of the things data centers are particularly good at and useful for. I have a lot of real world experience with this, both "back in the day" before data centers and now, utilizing data centers. Data centers are so much better it's not even a conversation worth having.
In overly simplistic terms, adding a bunch of additional "server nodes" with less geographical spacing will reduce latency, not increase it. And has nothing to do with your home internet connection speed anyway. Etc. I don't see how data centers are going to have a negative impact on internet speed. Not for home and small business users. As of now, they have increased speed for large enterprise users.
One thing you do have right - of course they'll get hacked. Doesn't change the fact that the best information security practices available now are still based on using data centers. They aren't going to be "safe", nothing is ever going to be "safe". But for now, they are the "most safe". See earlier conversation about replacing all servers monthly for one example. Still, we should all take it for granted that any personal data that exists online is probably already in the hands of bad actors. But if by some chance it is not, know that it will be.
DAA I understand what you are saying. KC had a Record Center when I was a kid. Remember the vid of massive IBM tape centers with automated search/recovery machines? Remember DNS attacks on web sites? So the AI 'crawlers; figure out how to get into the National Archive data and start changing stuff? Or your medical info? Or your financial stuff? Data centers aren't bad, but do consume a lot of resources and get major tax breaks. Most are now interconnected to the electric network and can create havoc if not controlled properly. Texas had a power problem as the network was miss-managed during really cold/bad weather. Only takes ONE screwup! Workforce there is maintenance only. I did Metro fiber/server stuff for a while, I know how it works. All this computer stuff has us on the edge and could get bad real fast.
thats why decades ago the USA started to transition everything to digital, digital, digital. it was a long game plan but its all coming around....for them.
go back to home phones, use cash, and disconnect that shark fin on top of cars....we did it for decades, we dont need any of these things.