Data Centers in Luxembourg

Luxembourg – Europe’s Secure Data Hub

Executive Summary

Luxembourg is a premier market for organizations demanding the highest levels of security, data privacy, and operational stability. Its central European location, combined with a strong focus on financial services and data sovereignty, makes it a strategic choice for businesses looking to serve Western Europe with minimal risk. The ecosystem is purpose-built for mission-critical workloads where uptime and compliance are non-negotiable.

Luxembourg: At A Glance

Network & Connectivity Ecosystem

Luxembourg provides a reliable and secure connectivity ecosystem, prioritizing quality over sheer density. It is an ideal location for serving the core of the European Union.

Carrier Density & Carrier Neutrality With 18 data centers from over 6 providers as of September 2025, the market offers solid choice. While not as dense as larger FLAP (Frankfurt, London, Amsterdam, Paris) markets, Luxembourg features carrier-neutral facilities that provide access to key European and global Tier 1 carriers.

Direct Cloud On-Ramps There are no direct public cloud on-ramps located within Luxembourg as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via high-speed, low-latency private links to the primary European cloud regions in Frankfurt and Paris.

Internet Exchange Points (IXPs) The Luxembourg Internet Exchange (LIX) is the main IXP in the country. It facilitates efficient local traffic exchange between networks, reducing latency and improving performance for end-users within the region.

Bare Metal Bare metal server capacity is readily available from multiple providers. Operators like OVHcloud and IONOS offer dedicated server solutions, allowing businesses to deploy high-performance computing without managing their own hardware.

Power Analysis

Luxembourg's power infrastructure is characterized by exceptional reliability and a focus on stability, aligning with the country's status as a critical financial center.

Average Cost Of Power Industrial power costs average around €0.25/kWh as of December 2023. While higher than some European averages, this price reflects investment in a highly resilient grid, which is essential for supporting the uptime requirements of financial and data-sensitive applications.

Power Grid Reliability The national power grid is modern, well-engineered, and extremely reliable. Data centers are typically supported by redundant power feeds and multiple substations, ensuring consistent and clean power delivery for critical operations. The power mix is predominantly fossil fuels (74%) with a growing share of renewables (26%), as of September 2025.

Market Access, Business & Tax Climate

Luxembourg's business environment is uniquely tailored to support international finance, digital services, and data-centric enterprises.

Proximity To Key Business Districts Data centers are strategically located to serve Luxembourg City's world-renowned financial district and the numerous European Union institutions based in the country. This proximity provides low-latency connectivity essential for banking, trading, and government operations.

Regional Market Reach From Luxembourg, businesses can effectively reach a massive consumer and business market across Germany, France, Belgium, and the Netherlands. Its location at the heart of the "Blue Banana," one of the world's largest economic corridors, is a significant logistical advantage.

Tax Advantage For Data Centers Luxembourg offers significant financial incentives for technology investments. The country's favorable corporate tax regime and participation exemption can substantially reduce the tax burden for data center operators and their largest tenants. This structure lowers the total cost of ownership and encourages long-term capital investment in digital infrastructure.

Natural Disaster Risk

Luxembourg has one of the lowest natural disaster risk profiles in Europe, making it an exceptionally safe location for deploying critical infrastructure. The country's overall INFORM Risk score is 1 out of 10, classifying it as a "Very Low" risk environment as of September 2025.

The primary natural hazards are minimal and well-managed:

• River Flood: The highest individual risk factor, yet still considered low on a global scale.
• Drought: A minor secondary concern.

The country has negligible exposure to earthquakes, tropical cyclones, tsunamis, or coastal flooding. This stable environmental profile minimizes physical threats to data center uptime and reduces the need for costly geological hardening.