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Vodafone Bets Big On Sustainable Logistics With €80m Luxembourg Hub

Vodafone is making a bold €80 million bet on Luxembourg, transforming a remote industrial zone near Bettembourg into a cutting-edge logistics hub.

Vodafone is making a bold €80 million bet on Luxembourg, transforming a remote industrial zone near Bettembourg into a cutting-edge logistics hub. With sustainability, AI, and supply chain resilience at its core, the project signals a new era for both the telecom giant and the Grand Duchy’s strategic ambitions.

On a sweltering June afternoon, deep in the lunar-like landscape on the outskirts of Bettembourg, pulsating club music blares under a black marquee sheltering a handful of suited guests from the sun. A short distance away, diggers flatten the ochre-toned earth characteristic of the Minett region, while a lone orange crane juts from the horizon like a one-legged bird. This is Wolser—a 100-hectare industrial zone straddling the communes of Bettembourg and Dudelange. It’s not somewhere you find by chance. You have to intend to come here. And by December 2025, many more will do exactly that.

Environmental Improvements

The occasion marks the symbolic placement of pillar 116, the foundation stone for Vodafone’s new Procure and Connect pan-European logistics hub. The 36,000 sqm warehouse will centralise materials essential for network deployment—from the tiniest fibres to large-scale radio access equipment.

This centralisation is expected to significantly cut emissions and improve time efficiency. For years, Vodafone has run fragmented supply chains from Luxembourg into every European country, duplicating truck movements and carbon output.

“This warehouse and distribution logistics hub is going to be built to the highest premium standards as well. So it’ll have a gold star, plus, if you want to call it that, from a sustainability perspective,” explained Ninian Wilson, CEO Vodafone Procurement, reflecting Vodafone’s commitment to environmentally responsible growth. The project represents an €80 million investment by the telco, which will lease the land from the Luxembourg government for the next 30 years.

Despite its seemingly remote location, the site benefits from proximity to Eurohub Sud, Bettembourg’s key rail logistics hub, and lies just minutes from the A3 motorway. Vodafone is partnering with CFL to enhance sustainability through the electrification of road fleets and by exploring rail transport options.

The facility, being built by Belgian firm MG Real Estate—also behind the Goodyear site in Dudelange—is aiming for BREEAM Outstanding certification. Vodafone is integrating artificial intelligence as part of its sustainability strategy, having already deployed 100 AI use cases, including an autonomous procurement tool that is forecast to improve efficiency by 30%. Wilson notes that human oversight remains critical to ensure accuracy.

Looking ahead, he sees scope to establish a circular economy at the site through reuse and recycling of materials—aligning with Vodafone’s ambition to become a fully green company by 2040.

Future-Proofing Supply Chains

The COVID-19 pandemic and ongoing geopolitical instability were key motivators for the project, revealing vulnerabilities in global supply chains. The new logistics hub aims to provide greater resilience, while also creating new opportunities.

In addition to the 25–30 employees who will operate the site, the hub is expected to attract startups focused on logistics innovation, and may serve third-party customers.

“We will be looking for other customers for which we can manage logistics on their behalf under the Vodafone brand,” says Wilson. “We think there’s a real opportunity to provide those services to other telcos across Europe.”

A Win for Luxembourg

The initiative is also a boost for Luxembourg and the commune of Bettembourg.

“It’s not just an investment here in Bettembourg, but it’s an investment into Luxembourg, into our strategic economical development fields,” says economy minister Lex Delles. “We’re speaking about logistics, we’re speaking about digitalisation, but also Vodafone is investing in helping startups scale up to develop here in Luxembourg. So Vodafone is not just a part of the family, but is a major player in the economic development of Luxembourg.”

Wolser B, the zone where Vodafone’s warehouse is under construction, dates back to the 1980s. Early occupants included Liberty and Guardian. The specific plot, where MG Real Estate broke ground in March, was once earmarked for a yoghurt factory by Greek dairy firm FAGE. That project faced local resistance over water usage concerns and was ultimately dropped in 2020 after the public prosecutor opened an investigation into the company’s accounts.

An economy ministry source confirmed that while there is a pipeline of interested parties for the site, no contracts have yet been finalised. However, discussions are underway to potentially develop a startup hub for SMEs focused on artisanal industries.

Although operations at the Vodafone warehouse are set to begin in December 2025, the official inauguration is scheduled for February 2026. The company plans to transition its European logistics operations over the following nine months.

Jess Bauldry
Jess Bauldryhttps://www.jessbauldry.eu/
Jess Bauldry is a freelance journalist. Over the last two decades, she’s worked in fast-paced newsrooms in the UK and Luxembourg, covering everything from courtroom dramas to startup breakthroughs.

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