Data Centers in Luxembourg City

Luxembourg City – Secure European Digital Hub

Executive Summary

Luxembourg City is a premier data center market for organizations prioritizing security, data privacy, and regulatory compliance. Its stable political climate and central European location provide a secure, low-latency hub for financial services, e-commerce, and multinational corporations serving the EU. This market is built for businesses whose digital infrastructure cannot fail.

Luxembourg City: At A Glance

Network & Connectivity Ecosystem

Luxembourg offers a high-quality, secure, and resilient network environment tailored for enterprise and financial-grade workloads. While not as dense as larger FLAP markets, the available connectivity is first-rate.

Carrier Density & Carrier Neutrality The market includes over 4 network service providers as of September 2025, with 12 carrier-neutral data centers. This ecosystem provides reliable, redundant connectivity options without depending on a single provider.

Direct Cloud On-Ramps There are no public cloud on-ramps located directly within Luxembourg as of September 2025. Businesses connect to cloud providers via dedicated, low-latency private network links to primary European hubs like Frankfurt and Paris.

Internet Exchange Points (IXPs) The main peering point is the Luxembourg Commercial Internet eXchange (LU-CIX). It facilitates efficient, low-latency traffic exchange between local and international networks, keeping domestic traffic within the country for improved performance and security.

Bare Metal Bare metal server options are available from providers operating within the region. Companies like Leasebeweb and OVHcloud offer dedicated server solutions for workloads requiring direct hardware access and maximum performance.

Power Analysis

Luxembourg's power infrastructure is characterized by exceptional reliability and high costs, aligning with its status as a premium market for mission-critical operations.

Average Cost Of Power Industrial power costs average €0.25 per kWh as of December 2023. This price point is higher than the European average but buys access to one of the continent's most stable and predictable power grids.

Power Grid Reliability The national grid is extremely reliable, with redundant feeds and connections to neighboring countries ensuring continuity. Data centers in the region are supported by modern, well-maintained infrastructure designed for high uptime requirements.

Market Access, Business & Tax Climate

Luxembourg's business environment is a primary driver for its data center market, offering strategic access and significant financial advantages.

Proximity To Key Business Districts Data centers are strategically located to serve Luxembourg’s world-class financial services sector, European Union institutions, and logistics industries. This proximity enables ultra-low latency for demanding trading and data processing applications.

Regional Market Reach From Luxembourg, a single data center can effectively serve the high-income consumer and business markets of Belgium, the Netherlands, western Germany, and eastern France with round-trip latencies under 10 milliseconds.

Tax Advantage For Data Centers Luxembourg offers a highly attractive tax climate for international companies. The country’s general participation exemption and favorable corporate tax regime can significantly reduce the overall tax burden for data center operators and tenants.

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. This physical security makes it an ideal location for disaster recovery and primary production workloads.

Key risk factors are minimal and include:

• River Flood: The highest-rated natural hazard, though still very low on a global scale.
• Drought: A minor consideration with minimal operational impact.
• Earthquake: Seismic risk is negligible.