Data Centers in Laredo

Laredo – Strategic Hub for US-Mexico Commerce

Laredo is a key market for businesses requiring low-latency connectivity to Mexico and the south-central United States. Its infrastructure supports logistics, trade, and manufacturing operations that depend on reliable digital services for cross-border commerce. For companies managing supply chains or digital services between the two countries, Laredo provides a strategic and cost-effective colocation option.

Laredo: At A Glance

Network & Connectivity Ecosystem

Laredo's connectivity is built for international trade and logistics. While not a primary interconnection hub, it offers reliable access to major carriers and network services essential for businesses operating across the US-Mexico border.

Carrier Density & Carrier Neutrality: Laredo is served by over 9 network providers as of September 2025. The market offers access to major US and Mexican carriers, with colocation facilities providing neutral interconnection points crucial for cross-border traffic exchange.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Laredo. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via private network links to facilities in major Texas metros such as San Antonio, Austin, or Dallas.

Internet Exchange Points (IXPs): Public peering is limited in Laredo. Most network traffic is exchanged through private peering arrangements within local data centers or routed through major exchange points in Dallas or Houston to optimize performance.

Bare Metal: Bare metal server options are available in the broader Texas market. Providers like Hivelocity and Latitude.sh can serve customers in Laredo from their regional data centers, offering dedicated compute for performance-sensitive workloads.

Power Analysis

Texas features a large, independent power grid with a diverse energy mix that benefits high-consumption industries like data centers.

Average Cost Of Power: Industrial electricity rates in the Laredo area typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing helps lower the total cost of ownership for data center operations. The state's power mix includes significant contributions from natural gas (~50%) and renewables like wind and solar (~30%).

Power Grid Reliability: The power grid supporting Laredo is well-engineered for industrial use. Data centers in the region are typically supported by redundant power feeds from separate substations to ensure high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Laredo's economy is dominated by its position as the largest inland port in the United States, creating a unique business environment centered on international trade, logistics, and manufacturing.

Proximity To Key Business Districts: Data centers in Laredo are strategically located to support the massive volume of import/export traffic crossing the border. They serve logistics companies, customs brokers, and manufacturing firms that rely on real-time data for supply chain management.

Regional Market Reach: From Laredo, businesses can effectively serve markets in southern Texas, northern Mexico, and major metropolitan areas like San Antonio and Monterrey. The location is optimized for low-latency communication across the border.

Tax Advantage For Data Centers: Texas provides a significant sales and use tax exemption for equipment, software, and power used in qualifying data centers. This incentive directly reduces the capital and operational expenses of deploying and maintaining IT infrastructure in the state.

Natural Disaster Risk

Laredo has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 out of 100 as of September 2025. The primary hazards are climate and weather-related, with minimal exposure to catastrophic events like earthquakes or hurricanes compared to coastal regions.

Key risks for the area include:

• Drought
• Heat Wave
• Hail
• Riverine Flooding
• Strong Wind