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Press Release

Luxembourg positioned as high specification stronghold for data intensive enterprises

A new report from BroadGroup suggests that Luxembourg, although holding just over 2% share by m2 space of EU-18 data centers, has nevertheless successfully positioned itself as a high specification data stronghold – with several Tier IV facilities – for data intensive enterprises demanding high levels of security and reliability.

Research for the report, Data Centers Luxembourg, suggests that the Grand Duchy, centrally located in Europe, has sought to position itself with financial services firms, healthcare and several new verticals who demand a high data security play and with the availability of seven Tier IV data centers is able to provide a unique offering.

Luxembourg’s status as a European trading and digital hub is based on its unique and favourable business climate with low tax rates – the second lowest across Europe.

Key players including ebrc and LuxConnect – both ultimately state owned – control the majority of the m2 capacity in the country. Luxembourg is also the most power intensive with particularly high levels available across all facilities, some of which are entirely based on renewable energy.

“Luxembourg although small in European deployment terms, has excellent connectivity and very high quality facilities which allied to its reputation for data privacy, financial propriety and low tax creates a unique proposition internationally,” commented Philip Low, managing director of BroadGroup.

Successful in past years in attracting middle eastern and Russian customers, it needs now to secure new international customers, given the low level of domestic demand. The report suggests it is entering a new period of competition, where it will vie with Ireland, Nordic countries and Switzerland for new business.

BroadGroup foresees Luxembourg positioned to benefit from the emergence of FinTech, providers of new payment methodologies and other verticals in the next few years.

The new report is one of a series covering different markets in Europe.

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