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Data-driven innovation is a priority in Luxembourg. The country welcomes companies wishing to develop, test and geo-localise digital solutions and develop their compliance in a safe, secure European environment with access to world-class technology.

Comprehensive data ecosystem

Luxembourg’s data ecosystem includes all the most central components, such as a national cybersecurity centre, data lakes, research institutes and world-class infrastructure, which are conducive to innovation. While the ecosystem has many individual strengths, it is the unique way that Luxembourg combines these strengths that is remarkable. All components are intertwined to provide a seamless customer experience. Local companies are encouraged to explore digital transformation to address changing market dynamics, and foreign businesses find a fertile ground for their entry into the European market.

Outstanding connectivity

Luxembourg offers exceptional connectivity secured by very fast, ultra-low-latency connections and a nation-wide coverage of ultra-high-speed broadband. 28 international fibre routes connect Luxembourg to main European and international hubs. The Luxembourg Commercial Internet Exchange (LU-CIX) provides carriers with an access to high-capacity lines without congestion and has recently been upgraded with DDOS capacity.

Home to a world-leading financial centre for several decades, Luxembourg has today an excellent infrastructure for data storage and handling. The country hosts 23 data centres, including 9 with Tier IV certification – the highest concentration of Tier IV data centres in Europe. The data centres are powered by low-cost, eco-friendly energy from a highly reliable power grid.

5G mobile networks are implemented on the territory of the City of Luxembourg and other pilot areas. The Luxembourg government’s vision is to be among the leaders in 5G while seeking to make the most of the new technology to improve the wellbeing of its citizens and drive economic prosperity.

Luxembourg has the most reliable electricity grid in Europe with smart meters available on a country-wide scale allowing for better control of supply and demand. The redundant and mostly underground power grid is interconnected with Germany and Belgium. The country also has some of the lowest energy prices in Western Europe (Eurostat, 2021).

Cybersecurity expertise

Cybersecurity is a cornerstone of Luxembourg’s data economy. Multiple players with complementary skills form a mature ecosystem able to provide companies with hands-on tools to help them increase their level of cybersecurity. Luxembourg is home to one of the world’s largest data lakes for space data analytics, and Estonia opened the world’s first digital embassy here in 2018 to store valuable, sensitive government information, followed by Monaco in 2021.

Business-oriented high performance computer

Luxembourg’s business-oriented high performance computer (HPC) MeluXina is the 10th most powerful in Europe and the 36th most powerful in the world. Its unique modular architecture has been designed to meet businesses’ needs for various amounts of processing power. While most HPCs are foreseen as pure research frameworks, 65% of MeluXina’s capacity is available to start-ups, SMEs and large companies. Companies using the HPC can also benefit from an ecosystem providing operational and financial support as well as complementary R&D capacities.

Luxembourg’s appetite to remain on the cutting edge of innovation is key to the launch of new initiatives such as the government-initiated GovTech Lab or the Luxembourg Institute of Science and Technology’s research project aimed at creating a digital twin of the whole country. As a next step, Luxembourg is analysing the opportunity to establish a national data exchange platform, which would assist data controllers in adopting data governance principles, implementing data interoperability standards, assessing the value of their data and identifying potential data partners.

Research partnerships

Luxembourg’s leading research centres in information and communication technologies are strongly focused on research collaborations with private companies. The University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust (SnT) specialises in areas such as cybersecurity, fintech, the internet of things and secure and compliant data management. The IT for Innovative Services (ITIS) department of the Luxembourg Institute of Science and Technology (LIST) conducts research to develop models, methods, software and devices for smart systems, fusing human and technological aspects.

Towards Industry 4.0

In order to help companies succeed with their digital transformation and move towards Industry 4.0, Luxembourg has set up the Luxembourg Digital Innovation Hub (L-DIH). The hub facilitates contact between companies that require high-end digital technologies and services and those that can provide these solutions, such as research institutes, specialised IT providers or start-ups coming up with new ideas. If need be, it can easily find complementary skills from outside Luxembourg through the European network of digital innovation hubs.

4th best connectivity in the EU

(2021 Digital Economy and Society Index)

6th in the EU for human capital (digital skills, ICT specialisation)

(2021 Digital Economy and Society Index)

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