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 to South Texas and Mexico
McAllen is an emerging edge data center market providing a critical digital gateway to South Texas and northern Mexico. For businesses requiring low-latency connectivity to this binational economic corridor, McAllen offers a cost-effective and resilient location to deploy infrastructure, bypassing more congested network hubs. This market is ideal for content delivery, logistics, and trade applications that depend on reliable access to the Rio Grande Valley.
McAllen: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good connectivity with a focus on regional and cross-border networks. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via the nearest major hubs like Dallas or San Antonio through private links. |
| Power Cost | $0.07–$0.09/kWh (est.) | Industrial power costs are competitive, supported by a diverse energy mix. |
| Disaster Risk | Moderate (43.46 NRI Score) – as of September 2025 | Primary risks include hurricane, heatwave, and drought events. |
| Tax Incentives | Yes | State-level sales and use tax exemptions are available for qualified data centers. |
| Sales Tax | 6.25% (State) – as of September 2025 | Texas offers a favorable state sales tax rate for business operations. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: McAllen supports a healthy ecosystem of over 11 regional and national carriers as of September 2025. The market's six data centers provide carrier-neutral interconnection, ensuring competitive and resilient connectivity options for cross-border traffic.
Direct Cloud On-Ramps: There are no direct, dedicated cloud on-ramps within McAllen as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through the nearest primary hubs in San Antonio or Dallas via private network extensions.
Internet Exchange Points (IXPs): Public peering is limited in McAllen. Most network interconnection occurs through private peering arrangements within local data centers or by routing traffic to major exchange points in Dallas.
Bare Metal: Bare metal server options are available in the region, providing on-demand compute for performance-sensitive workloads. Providers like Hivelocity can serve customers in the McAllen market from nearby locations.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the McAllen area are estimated to range from $0.07 to $0.09 per kWh as of September 2025. These competitive power costs help lower the total cost of ownership for data center operations. The Texas grid features a diverse mix, with approximately 62% from fossil fuels and 30% from renewables.
Power Grid Reliability: The power grid serving South Texas is managed by ERCOT and is engineered to support industrial and commercial needs. Data centers in the region typically secure power from substations with redundant feeds to ensure high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: McAllen's data centers serve the thriving international trade, logistics, and manufacturing sectors located along the U.S.-Mexico border. Proximity to these industries is critical for applications that manage supply chains and cross-border commerce.
Regional Market Reach: The market provides excellent low-latency connectivity to the entire Rio Grande Valley, a region with over 1.3 million people, and key metropolitan areas in northern Mexico, including Monterrey.
Tax Advantage For Data Centers: Texas offers a significant state sales and use tax exemption on equipment, software, and electricity purchased for qualified data centers. This incentive directly reduces both the initial capital investment and ongoing operational expenses for operators and their customers.
Natural Disaster Risk
McAllen has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.46 out of 100 as of September 2025. While the overall risk is not severe, the location's primary hazards are tied to its Gulf Coast proximity and regional climate.
Key environmental risks include hurricanes, heatwaves, drought, and strong winds. Other notable risks are riverine flooding, hail, and lightning. Careful site selection and facility engineering are essential to mitigate the impact of these potential events.
