To be fair this is not new, a truck pulling up and movers taking all the filing cabinets (or slapping government seals on them) is the way it used to be done.
If your local server filesystems are encrypted, then it's actually safer from that sort of thing than the file cabinets used to be.
If your local server filesystems are encrypted, then it's actually safer from that sort of thing than the file cabinets used to be.