Data Centers in Luxembourg

Luxembourg – Secure Hub for European Data Operations

Luxembourg is a premier market for organizations prioritizing data security, financial compliance, and low-latency connections to Europe's core economic centers. Its stable political climate and strong data privacy laws make it an ideal location for hosting mission-critical applications where data sovereignty and uptime are non-negotiable. This market ensures sensitive financial and corporate data remains secure while providing reliable access to the broader EU digital single market.

Luxembourg: At A Glance

Network & Connectivity Ecosystem

Luxembourg offers a robust and secure connectivity ecosystem, centrally located between the major FLAP (Frankfurt, London, Amsterdam, Paris) markets. While it is not a primary global hub, its infrastructure is modern and highly reliable for regional traffic.

Carrier Density & Carrier Neutrality: With access to over 6 providers across its 18 data centers as of September 2025, the market provides sufficient carrier diversity for most enterprise needs. Carrier-neutral facilities are the standard, offering competitive options for transit and peering.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Luxembourg as of September 2025. Businesses connect to the major cloud providers via dedicated fiber to hubs like Frankfurt or Paris. This setup provides secure, high-performance access to AWS, Google Cloud (GCP), and Microsoft Azure through private network extensions.

Internet Exchange Points (IXPs): The primary exchange is the Luxembourg Commercial Internet Exchange (LU-CIX), which facilitates efficient local traffic peering and improves performance for domestic users. For broader European peering, connections are typically routed through major exchanges in neighboring countries.

Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers such as OVHcloud and IONOS offer services in the region, catering to customers who require physical server isolation and control.

Power Analysis

Luxembourg's power infrastructure is characterized by high reliability and costs that reflect its position within Western Europe's stable energy grid.

Average Cost Of Power: The average cost for industrial consumers is €0.25/kWh as of December 2023. This rate is competitive for a high-service market and supports predictable operational budgets for colocation customers.

Power Grid Reliability: The national power grid is well-engineered and highly stable, with significant redundancy built into the infrastructure supporting major data center clusters. Facilities commonly feature multi-substation support, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Luxembourg's strategic advantages extend beyond its technical infrastructure, offering a uniquely favorable environment for international business.

Proximity To Key Business Districts: Data centers are located to serve Luxembourg's significant financial services sector, one of the largest in the world. This proximity provides banks, investment funds, and insurance companies with low-latency access for trading and data processing.

Regional Market Reach: From its central position, Luxembourg can effectively serve end-users across Germany, France, and the Benelux countries. It acts as a secure digital gateway to a population of over 60 million people within a few milliseconds of latency.

Tax Advantage For Data Centers: The country's tax policies are a significant draw for multinational corporations. Luxembourg offers a favorable corporate tax regime and a broad network of double-taxation treaties, which can lower the total cost of operations for international businesses establishing a digital presence.

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. The country is well-insulated from major seismic, coastal, and cyclonic events, making it a physically secure location for data center investment.

Key risk factors are minimal and include:

• River Flood: The highest individual risk factor, though still low in absolute terms.
• Drought: A minor consideration for the region.
• Earthquake: Extremely low probability and intensity.