Data Centers in Mcallen
6 locations found
- FC
fifteenfortyseven Critical Systems Realty (“1547”) MCTX1
200 South 10th Street, McAllen
- MD
McAllen Data Center MCA1
200 South 10th Street, McAllen
- C
CNDC MFE02
900 Beech Avenue, McAllen
- ST
Smartcom Telephone MCAL1
600 Ash Avenue, McAllen
- ST
Smartcom Telephone MCAL2
601 Beech Avenue, McAllen
- MD
McAllen Data Center MCA2
422 South 11th Street, McAllen
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McAllen – Strategic Gateway for US-Mexico Connectivity
McAllen, Texas serves as a critical digital infrastructure hub for businesses requiring low-latency access to northern Mexico and the Rio Grande Valley. Its unique geographic position offers a strategic advantage for logistics, manufacturing, and service providers targeting cross-border operations, ensuring reliable connectivity and uptime for revenue-critical applications.
McAllen: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with access to key US and Mexico fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in major Texas hubs; private network extensions are available. |
| Power Cost | $0.07 - $0.09/kWh | Industrial electricity rates are competitive, benefiting from a diverse energy mix. |
| Disaster Risk | Moderate (43.46) | Main risks are manageable with standard infrastructure hardening and operational planning. |
| Tax Incentives | Yes | Texas offers significant state sales and use tax exemptions for qualified data centers. |
| Sales Tax | 6.25% (State Rate) | The base state sales tax rate, as of Midyear 2025. |
Network & Connectivity Ecosystem
McAllen's connectivity ecosystem is defined by its strategic location on the U.S.-Mexico border, making it a key transit point.
Carrier Density & Carrier Neutrality: The market features access to over 11 carriers as of September 2025. This provides sufficient options for redundancy and competitive pricing, primarily within several carrier-neutral facilities.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located within McAllen as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest major hubs, such as Dallas or San Antonio, through private network extensions or dedicated fiber links.
Internet Exchange Points (IXPs): Public peering is limited within McAllen. Most interconnection occurs through private peering arrangements within local data centers or by connecting to major exchange points in Dallas, Houston, or Austin.
Bare Metal: Bare metal server options are available, providing dedicated, high-performance computing resources. Providers like Hivelocity and Latitude.sh can service the region, offering customized server configurations for demanding workloads.
Power Analysis
Average Cost Of Power: Industrial power costs in the McAllen area typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing is supported by Texas's diverse energy portfolio, which includes significant natural gas, wind, and solar generation. These stable energy costs allow businesses to manage operational expenses effectively.
Power Grid Reliability: The power grid, managed within the ERCOT system, is well-engineered to support industrial operations. Data centers in the region typically secure power from multiple substations and deploy robust on-site backup generation to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: McAllen's data centers are strategically positioned to support the thriving international trade, logistics, and manufacturing sectors that dominate the Rio Grande Valley. They provide essential IT infrastructure for maquiladoras, cross-border commerce, and government operations.
Regional Market Reach: The market provides excellent low-latency connectivity to the major metropolitan areas of northern Mexico, including Monterrey, as well as the entire South Texas region. This makes it an ideal location for content delivery, financial services, and logistics applications serving both sides of the border.
Tax Advantage For Data Centers: Texas provides a compelling tax environment for data center operators and tenants. The state's sales and use tax exemption on equipment, software, and power significantly reduces the capital and operational costs of establishing a large-scale computing presence.
Natural Disaster Risk
McAllen has a Moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 as of September 2025. While the overall risk is not severe, businesses should engineer infrastructure to mitigate the primary hazards for the region.
Key risks include:
- Drought
- Hail
- Heatwave
- Hurricane (primarily from Gulf Coast storms)
- Lightning
- Riverine Flooding
- Winter Weather
