Data Centers in Luxembourg

Luxembourg – Europe's Secure Digital Hub

Executive Summary

Luxembourg is a premier market for organizations requiring high security, data privacy, and strict regulatory compliance. Its central European location and stable, low-risk environment make it a top choice for disaster recovery and business continuity, particularly for the continent's major financial and institutional hubs. This strategic positioning ensures secure, low-latency access to critical European markets.

Luxembourg: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features 18 data centers operated by over 6 providers as of September 2025. This creates a focused ecosystem with a healthy mix of regional and international carriers, ensuring competitive and resilient connectivity options within carrier-neutral facilities.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Luxembourg. High-performance, low-latency access to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, is achieved via dedicated network links to the primary European cloud hub in Frankfurt, Germany.

Internet Exchange Points (IXPs): The main peering point is the Luxembourg Commercial Internet eXchange (LU-CIX). It plays a crucial role in localizing traffic, reducing latency for domestic users, and providing efficient routes to interconnected European networks.

Bare Metal: Bare metal server options are readily available from providers with a strong European presence. Service providers like Leaseweb and OVHcloud offer dedicated server solutions from facilities in or near Luxembourg, catering to workloads requiring direct hardware control.

Power Analysis

Average Cost Of Power: Industrial power is priced at approximately €0.25/kWh as of December 2023. While competitive for a premium, high-security European market, this price point requires careful total cost of ownership analysis for large-scale deployments. The national energy mix consists of 26% from renewable and low-carbon sources.

Power Grid Reliability: Luxembourg's power grid is well-engineered and exceptionally stable, benefiting from significant investment in redundancy. Major data center corridors are supported by multiple substations, making the grid suitable for the most demanding mission-critical financial and enterprise operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Luxembourg are strategically located to serve the country's world-class financial services sector, European Union institutions, and a growing digital media industry. This proximity provides the low-latency and high-security environment essential for financial trading, data processing, and regulatory compliance.

Regional Market Reach: Situated at the crossroads of Western Europe, Luxembourg provides excellent, low-latency connectivity to over 150 million people. It serves as an ideal hub for reaching major markets in Germany, France, Belgium, and the Netherlands, all within a few milliseconds of round-trip time.

Tax Advantage For Data Centers: Luxembourg offers a highly attractive tax environment for international companies. The country's favorable corporate tax regime and participation exemption policies can significantly reduce the overall tax burden on profits and dividends, encouraging long-term digital infrastructure investment.

Natural Disaster Risk

Luxembourg has a very low natural disaster risk profile, with an INFORM Risk score of 1 out of 10 as of September 2025. This exceptional stability is a key factor for organizations prioritizing uptime and business continuity.

The primary, though minimal, environmental risks include:

• River Flooding: The highest-rated natural hazard, though the risk level remains low.
• Drought: A secondary risk, consistent with regional climate patterns.
• Earthquake: Seismic risk is negligible.