Data Centers in Nogales
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Nogales – Your Cross-Border Digital Gateway
Nogales serves as a strategic digital infrastructure point for companies managing cross-border logistics, manufacturing, and trade between the United States and Mexico. Its location is ideal for deploying edge computing resources that require low latency to industrial parks and supply chain operations on both sides of the border, directly supporting revenue tied to efficient international commerce. This market is built for businesses that depend on resilient connectivity for near-border operations.
Nogales: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national fiber routes, but lacks direct cloud and major peering exchanges. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Phoenix, Arizona; private connectivity is available. |
| Power Cost | MXN$1.50 - $2.50/kWh | Industrial power pricing supports manufacturing and high-density computing needs. |
| Disaster Risk | Moderate (4.9/10) | Key risks are seismic and flood-related; human conflict risk is also noted. |
| Tax Incentives | Yes | DC-specific credit packages available through Mexico's development bank for qualifying projects. |
| Sales Tax | 16% VAT | Standard national value-added tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality As a critical border crossing, Nogales is serviced by a solid mix of national and regional carriers, as of September 2025. While not a dense hub like Mexico City, businesses can secure redundant connectivity from multiple providers within carrier-neutral facilities, ensuring uptime for cross-border operations.
Direct Cloud On-Ramps There are no direct public cloud on-ramps in Nogales, as of September 2025. Businesses connect to the 0 cloud regions available nationally via dedicated circuits. The closest major cloud access hubs are located in Phoenix, Arizona, and Querétaro, Mexico. Private network extensions provide secure, reliable access to all major cloud providers.
Internet Exchange Points (IXPs) Public peering is not established in Nogales. Most network traffic is exchanged through private peering arrangements or is routed through national IXPs in major hubs like Mexico City or US hubs like Phoenix and Dallas.
Bare Metal Bare metal server capacity is available in the broader region to support workloads requiring dedicated physical hardware. Providers such as phoenixNAP can serve the area from nearby US locations, offering high-performance compute for latency-sensitive applications.
Power Analysis
Average Cost Of Power Industrial electricity rates in Nogales typically range from MXN$1.50 to $2.50 per kWh, as of September 2025. This competitive pricing structure makes it economical for industrial and data center operations. The national grid relies on a mix of fossil fuels (~69%), renewables (~26%), and nuclear (~5%).
Power Grid Reliability The power grid serving the industrial corridors of Nogales is well-engineered to support manufacturing and logistics facilities. Data centers in the area benefit from this stability, and critical facilities are typically supported by redundant power feeds from separate substations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Nogales are positioned to serve the dense cluster of maquiladora (manufacturing) industrial parks and logistics companies that define the city's economy. This proximity is critical for applications managing real-time inventory, customs processing, and industrial automation.
Regional Market Reach From Nogales, businesses can effectively serve a significant regional market spanning northern Sonora in Mexico and southern Arizona in the United States. This makes it an important edge location for content delivery, IoT, and applications supporting the US-Mexico trade corridor.
Tax Advantage For Data Centers Mexico provides financial incentives to promote investment in its digital economy. Data center projects may qualify for credit packages from the national development bank, reducing the initial capital costs of establishing a new facility.
Natural Disaster Risk
Nogales has a moderate natural disaster risk profile, with an INFORM Risk score of 4.9 out of 10, as of September 2025. While the overall risk is manageable with proper facility engineering and disaster recovery planning, businesses should focus on specific threats.
The primary natural hazards for the region include:
- Earthquake: High risk (8.2/10)
- River Flood: High risk (7.9/10)
- Tropical Cyclone: Moderate-to-High risk (7.1/10)
- Drought: Low risk (3.0/10)
