Luxembourg's LuxConnect stands apart. As a state-owned but privately managed company, it's leveraging its unique position to help provide a means to double down on green operations without sacrificing financial focus.
“We are not necessarily profit-driven,” explains Paul Konsbruck, CEO of LuxConnect. “Yes, we do generate profit so we can continue to invest, but we don't have an obligation to have huge dividends to be paid out to our shareholders.”
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This distinctive structure traces back to LuxConnect's founding 18 years ago when the Luxembourg government took the initiative to invest in critical digital infrastructure for its growing financial hub.
Today, that same foundation enables the company to prioritise long-term sustainability over short-term gains.
“Since the beginning, we have always exclusively used green energy,” Konsbruck says, noting that the company sources hydroelectric power primarily from Scandinavian countries.
But LuxConnect's sustainability efforts extend far beyond renewable energy procurement. The company has implemented an innovative tri-generation partnership at its DC2 facility in Bissen, demonstrating how creative thinking can transform waste into value.
The system works with Kiowatt, a nearby cogeneration plant that converts the energy lost when wood waste from furniture is burned into electricity. The heat that would typically be released into the atmosphere is instead injected into the power grid of the nearby business area. Furthermore, 65% of the remaining heat is transformed into cold water and transported via an underground network back to the data centre for cooling.
Looking ahead, LuxConnect is partnering with local developments next to its Bettembourg campus to repurpose waste heat from servers for upcoming projects, including heating elderly homes and apartments.
While these initiatives require significant upfront investment, Konsbruck emphasises that the long-term benefits justify the costs.
“Sometimes things are more complicated and also sometimes more expensive to do it, at least in the short term,” Konsbruck acknowledges. “But to show that it's possible and in the midterm and for sure in the long-term strategy, you will even save money with it.”
The company's government backing provides another crucial advantage: stability. Luxembourg's political landscape, characterised by coalition governments, continuity and long-serving prime ministers since World War II, creates an environment where long-term sustainability commitments can flourish.
“When we commit to something that rests on sustainability, it's not only a marketing strategy,” Konsbruck emphasises. “It's mainly in the very core of our philosophy. You know that we will not change, neither our shareholders, neither our philosophy nor our marketing strategies.”
This commitment to sustainability extends to the everyday operations of their facilities. The company continuously works to optimise server room temperatures, noting that even small adjustments of one or two degrees can significantly reduce energy consumption.
LuxConnect's approach demonstrates how government backing can enable data centre operators to prioritise environmental innovation without sacrificing operational excellence. As the industry grapples with growing sustainability demands, this model might offer valuable lessons for both public and private operators.
“If you want to convince other actors in the market to be as sustainable as possible, you should start by yourself," Konsbruck concludes. “We will continue to do so also to show others that it is actually possible to be profitable on one side but also have a strong commitment to sustainability on the other hand.”
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