Data Centers in Luxembourg City

Luxembourg City – Europe's Premier Data Haven

Executive Summary

Luxembourg City is a primary market for financial services, e-commerce, and multinational corporations that require the highest levels of data security and privacy. The country's stable political climate, strong data sovereignty laws, and central European location make it a top-tier choice for deploying mission-critical infrastructure. This market is built for organizations where uptime, security, and low-latency connectivity to the EU's wealthiest economic centers are non-negotiable.

Luxembourg City: At A Glance

Network & Connectivity Ecosystem

Luxembourg offers a highly developed and secure connectivity environment, purpose-built for the demanding needs of the financial and digital media sectors. With 12 data centers and 4 providers, the market provides a solid foundation for European operations as of September 2025.

Carrier Density & Carrier Neutrality: The market features access to over 4 telecommunication providers as of September 2025. Carrier-neutral facilities provide redundant connections to major European backbones, ensuring resilient and high-performance network services.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Luxembourg as of September 2025. Businesses achieve secure, high-performance cloud access through private network interconnects (PNI) and dedicated fiber links to Frankfurt, the nearest major cloud region hub.

Internet Exchange Points (IXPs): The Luxembourg Internet eXchange (LIX) is the primary IXP, facilitating efficient local traffic peering and reducing latency for domestic users. This improves performance for applications serving the local market.

Bare Metal: Bare metal server options are readily available from providers with a strong European footprint. Companies like OVHcloud and IONOS offer dedicated server infrastructure for workloads requiring maximum performance and control.

Power Analysis

Average Cost Of Power: Industrial electricity rates average around €0.25/kWh as of December 2023. This pricing is competitive for a premium European market and allows for predictable operational expense modeling for high-density deployments.

Power Grid Reliability: Luxembourg's power grid is exceptionally stable and well-engineered, with a strong focus on redundancy. Data centers are supported by modern infrastructure fed by multiple substations, providing the reliability required for financial services and other high-uptime applications.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Luxembourg provide low-latency connectivity to the city's major business and financial districts, including Kirchberg. This proximity is critical for financial trading platforms, secure enterprise data processing, and content delivery networks.

Regional Market Reach: From Luxembourg, a single data center can effectively serve a massive consumer and business population across Germany, France, and the Benelux countries. Latency to Frankfurt, Paris, and Brussels is typically under 10 milliseconds.

Tax Advantage For Data Centers: Luxembourg's business-friendly environment includes significant tax advantages. The country's favorable corporate tax regime and participation exemptions can substantially reduce the total cost of ownership for large-scale infrastructure investments.

Natural Disaster Risk

Luxembourg has a Very Low natural disaster risk profile, with an INFORM Risk score of 1.0 out of 10 as of September 2025. The country's inland location and stable geology protect it from most major catastrophic events, making it one of the safest locations in Europe for critical infrastructure.

The primary, though minimal, environmental risks include:

• River Flood: The highest individual risk factor, though still rated as low.
• Drought: A minor, secondary risk.
• Earthquake: Seismic activity is negligible.