LuxConnect: “We Are Considering The Acquisition of MeluXina 2”

LuxConnect Nexus2050 visit by H.R.H. Prince Guillaume and Minister Lex Delles, CEO Paul Konsbruck. (© LuxConnect)

Over the past 17 years, LuxConnect has significantly contributed to Luxembourg’s position as an attractive digital hub. CEO Paul Konsbruck tells us more about the company’s latest developments, the increased interest of AI companies and the potential acquisition of a MeluXina 2.

Can you provide some background on LuxConnect and its mission?

LuxConnect is unique because it was created by the Luxembourg state with a clear mission to build and support an ecosystem by providing essential infrastructure. This includes data centers and connectivity. Seventeen years ago, Luxembourg lacked this infrastructure, so LuxConnect was created in order to  be able to invest in a fast and uncomplicated way. Our main goal is to provide infrastructure directly to various customers, including those in the financial sector, and to partner with IT companies who use our infrastructure to offer their services.

How has LuxConnect contributed to making Luxembourg a more attractive digital hub?

To be attractive in the IT sector, you need talent and infrastructure. Luxembourg has excellent connectivity and data centers, partly due to LuxConnect’s efforts. We’ve also launched initiatives like LuxProvide, which operates Luxembourg’s high-performance computer, MeluXina, and Clarence, our joint venture with Proximus to offer a sovereign cloud solution. These initiatives have boosted the ecosystem and provided unique resources to private businesses.

Can you tell us more about MeluXina, the high-performance computer?

MeluXina, acquired three years ago, has a five-year lifespan and is currently operating at 70% capacity. It’s used by researchers, the government, and the private sector. What sets it apart is its green credentials, as it runs on 100% green energy, placing it among the world’s greenest high-performance computers. It’s also accessible to everyone. We’re now planning the next steps, including adding quantum computing capabilities and we are considering the acquisition of MeluXina 2.

“Companies setting up AI factories need substantial power, and our data centers are well-equipped to meet these needs.”

Paul Konsbruck, CEO of LuxConnect

Let’s talk about LuxConnect’s dark fiber network. How does it contribute to Luxembourg’s connectivity?

Our dark fiber network is critical for enhancing connectivity in Luxembourg. While POST initially owned most of the infrastructure, LuxConnect was tasked with creating a network accessible to alternative operators and businesses. This competition has increased the coverage of optic fiber across Luxembourg. Our dark fiber is used by telco operators, small businesses, and institutions like schools and supermarkets, providing them with dedicated, high-quality connectivity.

LuxConnect boasts a 99.995% SLA. What measures ensure this level of reliability?

Our Tier IV data centers, which comprise a quarter of all Tier IV data centers in Europe, offer the highest standards of quality and full redundancy. Our cutting-edge facilities employ a 2N+1 redundancy model for cooling and power. This means that for every essential system, we have twice the required capacity plus an additional unit. For example, if the operation demands two UPS units, our design incorporates five, thereby safeguarding against any potential failure and guaranteeing maximum uptime. This robust redundancy ensures that our clients’ data remains secure and accessible at all times, with absolutely no downtime. By investing in the most expensive and sophisticated technology, we deliver unparalleled reliability, ensuring our clients can trust their critical data and applications to always be available.

What has been one of the biggest challenges LuxConnect has faced?

One of the significant challenges is energy prices, which impact the cost of hosting data. While prices have improved, we are still in global competition. It’s crucial to explain to customers that although hosting in Luxembourg might be more expensive due to energy prices and high-quality infrastructure, it offers full security and proximity within a known legal framework. This level of security and quality is essential for many customers.

Are there any future developments you can share with us?

We’re seeing a significant increase in demand due to the rise of artificial intelligence. Companies setting up AI factories need substantial power, and our data centers are well-equipped to meet these needs. This trend is transforming our customer base, as more large companies involved in AI are seeking our services. This is an exciting development, and we’re prepared to support these new, power-intensive requirements.

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