• Industry: Industrial and consumer markets, Technology, Media and Telecommunications (TMT)
  • Type: Newsletters
  • Date: 10/29/2013


Philippe Neefs


Tel. +352 22 51 51 5531


Miriam Keusen


Tel. +352 22 51 51 5566

Data Center Activities - Cloud Computing 

Luxembourg to boost leading market position by ensuring risk free environment

Luxembourg being ideally situated in the middle of Europe and with low latency connections to the major internet hubs located in key cities of Europe (i.e. Amsterdam, Frankfurt, London, Paris and Brussels), it has easily become the most modern and leading datacenter market place in Europe.


Currently, there are over 20 datacenters operating in Luxembourg and providing data hosting services to multinational players with high speed low latency connections to the European internet hubs. This easily puts Luxembourg in a special place among other jurisdictions, and it is the reason why many major public and private players have chosen Luxembourg for their datacenters.


Owing to this characteristic, there are diverse cloud offerings available in Luxembourg. One of them, cloud computing, is an expression used to describe a variety of computing concepts that involve a large number of computers connected through a real-time communication network, such as the internet. In practice, cloud computing gives businesses the possibility to have their data and files stored on IT infrastructures accessible through the internet, instead of keeping them on their own devices.


Choosing Luxembourg based cloud services provides many benefits to the service receivers: low latency, state of the art infrastructure, high availability, security, confidentiality and extended know-how in outsourcing.


Beside these inherent advantages, the Luxembourg Government also made material investments in order to become the strongest player in European data markets. In this respect, the Government recently changed the Commercial Code by enacting a law on 9 July 2013 which amends article 567 of the Luxembourg Commercial Code.


This legislative change mainly aims at making cloud computing, e-archiving and data center activities in Luxembourg more secure by giving a right to claim back intangible and non-fungible movable assets from a bankrupt company as long as the following conditions are satisfied:


  • The bankrupt company must not be the legal owner of the data but only hold it,
  • The claimant must have entrusted the data with the bankrupt company or be the legal owner of the data,
  • The data must be separable from other intangible and non-fungible assets of the company at the time of the bankruptcy proceedings opening.


As a result of this change, where a provider of distance IT services or cloud computing solutions goes bankrupt, the claimant companies are allowed to recover their stored data and, as such, the data confidentiality is ensured even in bankruptcy cases.


The law also states that the claimant companies are responsible for the related data recovery costs.


As a conclusion, thanks to the governmental strategic plan, it seems that Luxembourg will continue to keep its strategic position in order to be regarded as the heart of modern data center activities within Europe, by providing high qualified, secured and well structured cloud services to the multinational business environment. This will obviously help Luxembourg to keep transforming itself into one of Europe's top locations with a vibrant ICT infrastructure.


For further information, please do not hesitate to contact us.




Article 567 - Luxembourg Commercial Code (free English translation):

Non-fungible tangible movable assets consigned to the bankrupt, either by way of deposit or for sale on behalf of the owner, may be claimed, if available at the time of the opening of bankruptcy proceedings.


Non-fungible intangible movable assets in the bankrupt's possession at the time of the bankruptcy may be claimed by the person who has entrusted this property to the bankrupt or by their owner, provided that this property is separable from other intangible and non-fungible movable assets at the time of the opening of bankruptcy proceedings, related expenses being payable by the claimant.


In case of resale of the assets referred to in the previous subparagraphs by the bankrupt before the opening of the bankruptcy procedure, the owner may claim the price or the part of the price which has not yet been paid by the buyer at the moment of the declaratory judgment of insolvency.


The provisions of subparagraphs 2 and 3 do not apply when non-fungible intangible assets have been pledged or given as collateral. Furthermore, they do not apply to non-fungible intangible assets covered by a financial collateral arrangement which fall under the provisions of the law of the 5 August 2005 on financial collateral arrangements.







The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.



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