For many gamers that connect to onlive from mainland Europe this is good news, because it carries the hope of reduced latency and better picture quality. The most important facts in the article are that onlive will build the data center in Bettembourg in four phases, each phase with 1500 servers. The first phase should be finished in July. OnLive is partnering with LuxTelecom and will be present at ICT Spring 2011. The data center will be seamlessly integrated with the US service and will also function as a backup for the UK data center. OnLive stated before that they plan to make their service available seamlessly world wide with the exception of some multiplayer functionality that requires good latency, but that might also change.
The article is in french, you can use google translate and you can find it here. You can find more info about the partnership of OnLive and Telecom Luxembourg here.