Data Centers in Nancy
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Nancy – Strategic European Digital Hub
Executive Summary
Nancy provides a compelling secondary market for digital infrastructure in Western Europe. It is an excellent choice for enterprises requiring a low-risk location for disaster recovery, data backup, or serving the Grand Est region of France and neighboring countries like Germany and Luxembourg. The market offers reliable power and a stable operating environment, ensuring uptime for critical applications.
Nancy: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a secondary market, suitable for regional workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access major clouds via private network extensions to hubs like Paris or Frankfurt. |
| Power Cost | €0.15 – €0.20/kWh (est.) | Driven by a high percentage of stable nuclear power in the national grid. |
| Disaster Risk | Low (2.7/10) – as of September 2025 | Very low overall exposure to significant natural disasters. |
| Tax Incentives | Yes | Favorable financing, like EIB loans, is available for specific data center projects. |
| Sales Tax | 20% VAT – as of September 2025 | Standard French turnover tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market has a focused carrier presence, with at least 2 providers available in local data centers as of September 2025. This provides foundational options for redundancy and network services.
Direct Cloud On-Ramps: There are 0 direct cloud on-ramps and 0 cloud regions within Nancy as of September 2025. Secure, low-latency connections to providers like AWS, Google Cloud, and Microsoft Azure are established through private network links to primary interconnection hubs in Paris or Frankfurt.
Internet Exchange Points (IXPs): Public peering is limited within Nancy. Most network peering is conducted privately or routed through national internet exchanges located in Paris, ensuring efficient traffic exchange across France and Europe.
Bare Metal: Bare metal server options are available for workloads requiring dedicated physical hardware. Providers like OVHcloud offer deployment capabilities in the region, supporting performance-intensive applications.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated between €0.15 and €0.20 per kWh as of September 2025. France's power grid, dominated by approximately 68% nuclear and 22% renewable sources, provides predictable pricing and supports corporate sustainability goals.
Power Grid Reliability: The French national power grid is well-engineered and highly reliable. Data centers in the region benefit from this stability, which is essential for maintaining consistent operations and delivering high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Nancy serve the commercial and industrial centers of the Grand Est region. This proximity is ideal for local enterprises in logistics, manufacturing, and technology that require low-latency infrastructure.
Regional Market Reach: Nancy's strategic location offers effective reach into southern Germany, Luxembourg, and Belgium. It is a valuable hub for companies targeting this tristate area with digital services.
Tax Advantage For Data Centers: The French government and European institutions support digital infrastructure investment. Specific large-scale data center projects may qualify for advantageous financing arrangements, such as loans from the European Investment Bank, to stimulate growth and expansion.
Natural Disaster Risk
Nancy has a very low natural disaster risk profile, with an overall INFORM Risk score of 2.7 out of 10 as of September 2025. This rating indicates a stable and secure physical environment for critical infrastructure.
The primary natural hazards to consider are primarily moderate and well-understood regional risks:
- River Flood: This is the most significant natural hazard for the region.
- Earthquake: Seismic risk is present but rated as low.
- Drought: The area has some exposure to drought conditions.
