In a strategic move to bolster its global cloud presence, Microsoft has announced plans to expand its cloud computing services to Luxembourg by early 2026. This expansion will enable Luxembourg-based businesses to leverage cutting-edge cloud solutions while benefiting from enhanced data sovereignty and reduced latency. The launch aligns with the national digitalization strategy, with a focus on artificial intelligence (AI) and cybersecurity.
Through a partnership with Deep, a subsidiary of Post Luxembourg, Microsoft aims to provide an “entry point” to its network on Luxembourg soil. This development comes after over three years of collaboration and investment to establish the necessary infrastructure for a Microsoft-managed cloud platform in the country.
Why Luxembourg?
Luxembourg’s strategic location in Europe and its robust commitment to data protection make it an ideal site for Microsoft’s new cloud infrastructure. Currently, Luxembourg-based customers rely on cloud services routed through other cities such as Frankfurt, Amsterdam, and Paris. With this new expansion, Microsoft aims to reduce latency and offer localized cloud computing solutions that comply with the EU’s data protection regulations, specifically the EU Data Boundaries.
The Role of Deep and Post Luxembourg
Microsoft’s Luxembourg cloud expansion will be carried out in collaboration with Deep, a key partner that emerged from the merger of several Post Luxembourg subsidiaries. Deep provides a range of IT services, including cybersecurity, AI, and cloud computing, and operates multiple data centers in Luxembourg. Microsoft has indicated that it will use Deep’s facilities to house its cloud infrastructure, with the company working to meet Microsoft’s stringent operational and security standards.
Deep operates two primary data centers and three additional “DEEP Resilience” data centers in Luxembourg, which will support Microsoft’s cloud offerings. The collaboration aims to drive digital transformation for businesses, particularly small and medium enterprises (SMEs), which often lack the resources to build and maintain their own IT infrastructure.
Key Benefits for Luxembourg-Based Businesses
Microsoft’s expanded cloud offering will bring several advantages to Luxembourg’s businesses. One of the most significant benefits is the opportunity for local businesses to store their data within the country, ensuring compliance with strict EU data protection laws. Additionally, Microsoft’s cloud infrastructure will enable businesses to scale more efficiently, accessing enterprise-grade cloud services without the need to invest in costly IT hardware.
For SMEs, the cloud offers an affordable solution to handle complex IT needs, from computing power to data storage. With Microsoft’s advanced cloud tools and Deep’s support, Luxembourg’s SMEs will be able to accelerate their digital transformation efforts.
Microsoft’s Long-Term Commitment to Luxembourg
This new cloud offering is part of Microsoft’s ongoing commitment to Luxembourg. The company has been supporting the Luxembourgish economy for over two decades, and this expansion represents a continued investment in the country’s digital future. Sébastien Respaut, Microsoft’s Luxembourg country manager, emphasized that the project has been in development for more than three years and is designed to serve the growing demand for local cloud services.
Respaut also noted that the infrastructure will be operated under EU Data Boundaries, ensuring that both data and metadata remain within Luxembourg, providing peace of mind to businesses concerned with data sovereignty.
Luxembourg’s Economic Vision and Microsoft’s Contribution
The Luxembourg government has been vocal about its commitment to fostering digital transformation and innovation in the country. Lex Delles, the Minister of Economy, SME, Energy, and Tourism, highlighted the importance of cloud computing in supporting business growth and facilitating collaboration across sectors. According to Delles, Microsoft’s investment in Luxembourg’s cloud infrastructure will significantly contribute to the nation’s economic fabric.
Deep’s director, Ludovic Gilles, echoed this sentiment, noting that the cloud’s role in enabling digital transformation is especially critical for SMEs, which may not have the resources to build and manage complex IT systems. By providing reliable, scalable cloud services, Microsoft and Deep will empower Luxembourg’s SMEs to compete in the digital age.
Deep’s Role in Luxembourg’s Digital Transformation
Deep’s role in this collaboration is pivotal. As the result of a merger between EBRC, Elgon, Digora Luxembourg, and POST Telecom’s B2B division, Deep brings a wealth of expertise in cloud services, cybersecurity, and AI. In addition to its work with Microsoft, Deep recently announced plans to launch a sovereign cloud in partnership with OVHcloud, further reinforcing Luxembourg’s position as a hub for secure and reliable cloud infrastructure.
Data Center Investment and the Future of Cloud in Luxembourg
In addition to this expansion, Microsoft is heavily investing in data center infrastructure worldwide. The company recently revealed plans to spend $80 billion in the 2025 fiscal year on building AI-focused data centers, a significant increase from the previous year. This global investment underscores Microsoft’s commitment to meeting the growing demand for cloud services driven by AI, machine learning, and data analytics.
FAQ Section
What is the timeline for Microsoft’s cloud expansion in Luxembourg?
Microsoft plans to launch its expanded cloud services in Luxembourg by early 2026.
How will Microsoft’s cloud expansion benefit local businesses?
Local businesses will benefit from reduced latency, enhanced data sovereignty, and access to advanced cloud services tailored to their needs. SMEs, in particular, will have an affordable, scalable solution for their IT infrastructure.
What role does Deep play in Microsoft’s Luxembourg cloud expansion?
Deep, a subsidiary of Post Luxembourg, will host Microsoft’s cloud infrastructure in its data centers. Deep will also support local businesses with cloud, AI, and cybersecurity services.
Will Microsoft’s cloud infrastructure in Luxembourg comply with EU data protection laws?
Yes, the cloud services will operate under EU Data Boundaries, ensuring that all data and metadata remain within Luxembourg, complying with stringent EU data protection regulations.
What other cloud initiatives is Deep involved in?
In addition to its collaboration with Microsoft, Deep is also launching a sovereign cloud with OVHcloud, further supporting Luxembourg’s digital transformation.
