Data Centers in Luxembourg City

Luxembourg City – Secure Hub for European Data

Luxembourg City is a premier European market for organizations prioritizing data security, financial compliance, and low-latency access to the continent's core. Its stable political climate and strong data privacy laws make it an ideal location for disaster recovery and business continuity for mission-critical applications serving Western Europe. The market provides a secure, reliable alternative to larger, more congested European hubs.

Luxembourg City: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features 12 data centers operated by 4 distinct providers, ensuring competitive and resilient connectivity options as of September 2025. This environment fosters carrier neutrality, allowing customers to choose from a variety of local and international networks.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Luxembourg as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, through dedicated private network extensions to the primary European hub in Frankfurt, Germany.

Internet Exchange Points (IXPs): The Luxembourg Commercial Internet Exchange (LU-CIX) is the primary IXP in the country. It facilitates efficient local traffic exchange, reducing latency and transit costs for interconnected networks.

Bare Metal: Bare metal server options are readily available from providers in the region, offering dedicated compute for performance-sensitive workloads. Providers like OVHcloud and IONOS serve the Luxembourg market.

Power Analysis

Average Cost Of Power: Industrial electricity pricing is approximately €0.25 per kWh, as of December 2023. This rate is competitive for Western Europe and allows for predictable operational spending on high-density deployments. The national power mix consists of 26% renewables/low-carbon sources and 74% fossil fuels.

Power Grid Reliability: The national power grid is well-engineered and highly reliable, supported by strong cross-border connections with Germany and France. Data centers in the region are typically connected to multiple substations, ensuring high levels of uptime and fault tolerance for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Luxembourg are strategically located to serve the country's massive financial services, banking, and insurance sectors. This proximity provides secure, low-latency connectivity essential for financial transactions and data processing.

Regional Market Reach: From its central location, Luxembourg provides excellent connectivity to the "Blue Banana," a corridor of major European cities including Frankfurt, Brussels, Amsterdam, and Paris. This allows businesses to effectively serve a population of over 100 million people with minimal delay.

Tax Advantage For Data Centers: Luxembourg offers a compelling tax environment for technology companies. Its general participation exemption and a favorable corporate tax regime can significantly lower the total cost of ownership for data center operations. These incentives are designed to attract long-term investment in digital infrastructure.

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 makes it one of the safest locations in Europe for critical infrastructure, ensuring high uptime and minimal weather-related service disruptions.

Key risks are minor and well-managed:

• River Flood: The highest individual risk factor, though still low on a global scale.
• Drought: A secondary, non-critical environmental risk.
• Earthquake: Seismic risk is negligible.