Data Centers in McAllen

McAllen – The Premier Interconnection Gateway to Mexico

Executive Summary

McAllen serves as the critical bridge for enterprises requiring low-latency access to Mexican markets while maintaining assets in a predictable U.S. regulatory environment. It is the primary choice for logistics and telecommunications firms that demand physical security and high-speed cross-border transport. By housing infrastructure here, businesses gain immediate proximity to the backbone of North American trade.

McAllen: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Carrier count: over 11. As of December 2025, the market supports ~10–15 specialized providers focused on high-capacity transport into Mexico. Carrier neutrality is standard across the local data centers, providing flexible options for international transit and preventing vendor lock-in.

Direct Cloud On-Ramps Over 0, enabling access to 0 cloud regions. As of December 2025, there are no direct, physical on-ramps for AWS or Google Cloud (GCP) in the immediate metro. Most deployments utilize private transport or waves to reach the nearest major cloud clusters in San Antonio or Dallas.

Internet Exchange Points (IXPs) The McAllen IX serves as the primary peering point for the region. It ensures that cross-border traffic stays local rather than hair-pinning through distant cities, significantly reducing latency for manufacturing and financial services as of December 2025.

Bare Metal General availability for bare metal is steady through providers like Hivelocity and Latitude.sh as of December 2025. These services allow firms to deploy hardware resources quickly without the long-term capital commitment of building their own physical footprint.

Power Analysis

Average Cost Of Power Industrial electricity is approximately $0.08/kWh as of December 2025. These rates provide significant operational savings compared to major coastal hubs. The energy mix in Texas consists of roughly 62% fossil fuels and 30% renewables, offering a balance of reliability and price stability for large-scale infrastructure.

Power Grid Reliability The local grid is purpose-built for industrial demand and operates within the independent Texas energy market. Facilities in this corridor typically utilize multi-substation support and redundant transformer designs to maintain high uptime for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located near international trade zones and the border bridges. This proximity is vital for firms in the logistics and manufacturing sectors that require immediate physical and digital access to the center of U.S.–Mexico commerce.

Regional Market Reach McAllen serves the entire Rio Grande Valley and the massive industrial manufacturing hubs of Northern Mexico. It functions as a gateway for data flowing between North and Latin America, making it a high-stakes location for international transit.

Tax Advantage For Data Centers Texas provides a state sales and use tax exemption for qualified data center equipment and software. This incentive directly lowers the total cost of ownership for companies investing in hardware and cooling systems within the state.

Natural Disaster Risk

The overall risk profile for McAllen is Moderate (43.46) as of December 2025. While the region is inland, it remains subject to weather patterns typical of the Gulf Coast and South Texas. Modern facilities here are built with reinforced structures and redundant cooling to handle high temperatures.

The highest-scoring natural hazards include:

• Hurricanes
• Heat Waves
• River Flooding
• Lightning
• Drought

Other environmental risks, such as winter weather and wildfires, are considered minor for purpose-built data center sites in this market as of December 2025.