Capital expenditure in data centres around the world in 2026 is huge, estimated at around USD 700 billion. However, much of this investment is concentrated among US-based hyperscalers building infrastructure within the United States. How Europe responds to this enormous challenge will help define how sovereign European data can remain in the years to come.

It has now been 20 years since the Luxembourg State took the initiative to support the creation of LuxConnect, a flagship national data infrastructure project. Since then, other international data companies have explored developing infrastructure in Luxembourg, but major new investments have remained relatively rare.

Has LuxConnect been a good investment? We spoke with their CEO Paul Konsbruck to find out.

LuxConnect was created in 2006 as a state-backed infrastructure initiative. As you approach your 20-year anniversary, what has been your most significant evolution?

There hasn’t been a single defining shift, but rather a series of evolutions that have steadily reshaped LuxConnect. When the company was founded in 2006, Luxembourg needed robust digital foundations to sustain its economy and attract new players. Our initial mission was clear: deliver reliable, redundant, and sustainable Data Centers, alongside a high-performance Dark Fiber network covering the entire country.

Over time, we expanded well beyond that original scope. The creation of our subsidiaries LuxProvide and Clarence marked a turning point, enabling us to broaden our capabilities and strengthening our positioning. In a world defined by exponential data growth, these entities are central to developing AI-driven solutions. LuxProvide, with our HPC MeluXina, unlocks advanced data analytics capabilities, while Clarence – our sovereign cloud solution developed in partnership with Proximus – offers a highly secure and scalable platform for future needs.

Today, LuxConnect is no longer just an infrastructure operator. We have become a global integrator, supporting clients end-to-end, from the design and sizing of infrastructure projects to their full deployment.

You’ve recently refreshed your logo and website. Beyond aesthetics, what strategic message are you sending to the market, and how does this reflect LuxConnect’s next phase of growth?

Our new visual identity, introduced for our 20^th anniversary, is designed to make a lasting impression – but it is not about celebrating an endpoint. We see this anniversary as a milestone in an ongoing journey of innovation.

The tagline “Innovation built to last – Shaping tomorrow’s digital infrastructure” captures the essence of our strategy. “Built to last” reflects our commitment to quality, robustness, and reliability. It also speaks to responsible innovation – solutions designed not only for performance but for sustainability. Innovation, in this sense, becomes a driver of long-term resilience.

This identity balances modernity with experience – combining forward-looking ambition with the stability and continuity that have defined LuxConnect since its inception. Our new website, to be launched in early June, will fully embody these messages and align with the broader campaign.

In 2026 the geo-politics in the middle east and the unpredictability of the US administration have triggered many challenging questions about data governance and resilience. What is your message to end users about their data?

The current geopolitical environment has brought data governance issues to the forefront in a way we have not seen before. What was once considered a purely technical or operational matter has now become a strategic concern.

Digital sovereignty is not a one-size-fits-all concept. It requires asking the right questions, based on specific use cases. In certain sectors – such as public services, healthcare, finance, or industry – sovereignty is critical. But ultimately, it is about making informed and conscious decisions.

The objective is not to retreat into isolation, but to build balanced architectures that combine openness with control. True sovereignty is about having the right frameworks, the right partnerships, and the right levers of control when it matters.

We are already seeing strong commitments in this direction. A recent European Commission initiative, with a €180 million budget over six years, aims to equip more than 70 EU institutions with sovereign cloud capabilities under strict governance criteria. In this context, Clarence – developed by LuxConnect in partnership with Proximus – has been selected as part of a consortium alongside key European players. This is precisely the direction we are pursuing.

You came from a government and radio background into leading a critical national infrastructure company. How has that shaped your leadership approach at LuxConnect, particularly when balancing public interest and commercial growth?

At first glance, the transition from media and government to LuxConnect may seem unusual – but to me, there is a clear logic behind it.

Throughout my career, I have always been driven by ideas, by projects, and by a broader purpose that goes beyond my own role or even that of a specific employer. In the media, I saw firsthand how important information and communication are for society – shaping debates, creating value, and acting as a gatekeeper in many respects. During my time in the Ministry of State, I worked mostly behind the scenes but I had the opportunity to contribute to some extend and serving the public interest and the country as a whole.

What we do at LuxConnect is, in many ways, a natural continuation of that path. We contribute to building a strong, resilient environment by developing critical digital infrastructure and enabling forward-looking solutions that position Luxembourg in an increasingly competitive international landscape.

At the core of both my personal approach and our mission as a company is the creation of value – for society, for the economy, and for the country. Commercial success is not an end in itself, but a necessary condition to achieve this. It allows us to invest, to innovate, and to sustain our long-term impact.

This balance between public interest and commercial performance is not a contradiction – it is precisely what drives me, and what drives us at LuxConnect every day.

In comparison to the USA and Asia, Europe remains behind in terms of investment into Data Centers. What is your message to policymakers?

Europe must invest at scale in digital infrastructure. In other regions, AI-dedicated facilities are emerging at a rapid pace. If we fail to match that level of ambition, these developments will simply take place elsewhere – along with the value creation and strategic influence that come with them. Europe risks losing not only competitiveness, but also its ability to shape the technologies that will define its future.

This is fundamentally a question of sovereignty: do we want this industry to grow within Europe or beyond its borders? Meeting this challenge requires more than funding alone. It calls for a clear and coherent framework – one that combines investment with regulatory clarity and a long-term vision. The goal is to create an environment that fosters innovation, particularly in AI and cloud, while continuing to set global standards.

There is also a need for speed. The global landscape is evolving rapidly, and Europe cannot afford lengthy decision-making cycles. If we want to remain relevant in the digital economy, we must act with both ambition and urgency.

Luxembourg should (and could) become a European data hub, but arguments around sustainability and planning have slowed the decision-making process. How do you believe we should navigate this dichotomy?

The debate between sustainability and digital development is often framed as a trade-off, but that is the wrong starting point. The real challenge is to ensure they evolve together.

Luxembourg already has strong fundamentals to become a European data hub – connectivity, political stability, and a robust regulatory environment. It is also actively positioning itself through concrete initiatives. The AI Factory is accelerating AI adoption by bridging research and real-world applications, while Luxembourg’s role in EuroHPC, through MeluXina, provides high-performance computing capabilities to both research and industry. These are tangible building blocks of a European data ecosystem.

What is needed now is a more integrated approach, where digital infrastructure is aligned with energy strategy and environmental objectives. Sustainability should be seen as a driver of innovation, pushing the industry toward greater efficiency and long-term viability.

At the same time, clarity and predictability in planning are essential. Investors need a framework that is both rigorous and agile. Ultimately, if we align sustainability with digital ambition, Luxembourg can position itself not just as a data hub, but as a model for responsible digital infrastructure in Europe.