The Luxembourg government has now proposed a 25-hectare site to Google in Bissen to construct its future data centre. The offer now needs to be discussed by the US bosses, according to a report on Saturday.
The information was revealed in a report by Luxembourg’s state-funded radio station 100,7.
Google’s plans are to set up a large data centre in the Grand Duchy to assert its position in a highly competitive market. Such investment in Luxembourg is unprecedented and would create several hundred jobs.
The plot of land, right in the centre of the country, would be an ideal location for Google.
"This would be the biggest investment in Luxembourg's history," said Economy Minister Etienne Schneider when contacted by Luxemburger Wort.
The internet giant has been losing ground where data storage is concerned, or cloud computing as it is commonly known, especially to the likes of Amazon Web Services.
This means that it needs to set up 12 data centres around the world. Two have already been announced in the US and Japan leaving ten more locations to be found before 2018.
Luxembourg positioned itself as a contender as a country with ideal characteristics such as its business markets and its digital infrastructure able to connect to all major capitals in a few thousandths of a second, known as the "latency rate."
Huge electricity demand
Energy cost is another major argument. Luxembourg is one of the countries in Europe where electricity costs the least for industrial customers, 0.09 euro per kilowatt-hour compared to 0.13 for the European average, according to Eurostat's 2015 statistics.
An agreement in principle has been reached with the government, but what remains is the provision of the 25 hectares of land. The commune of Bissen, or more precisely Roost, was initially chosen because of the presence of the Creos electricity maintenance centre in the area.