How a South Texas data center is reshaping the border

Expansion Plans for a Data Center in South Texas

A New Jersey-based data center company is set to make a significant investment of $5.3 million in expanding its operations in South Texas. This move aims to solidify the region's position as the "internet gateway between Mexico and the U.S." The company, 1547 Critical Systems Realty, has been operating for some time and currently manages nearly a dozen data centers across the country. Its presence in the Rio Grande Valley includes an existing facility in McAllen, the largest city in Hidalgo County.

Location of the MCTX1 Data Center

The specific data center in question, known as MCTX1, is housed within the Chase Tower in McAllen. Located at 200 S. 10th St., this 17-story commercial building is situated on one of the busiest commercial corridors in the city. The tower is home to several prominent businesses, including Chase Bank, Telemundo 40, and the corporate headquarters of Rhodes Enterprises. According to 1547, the Chase Tower is considered "the most interconnected building in South Texas."

Overview of the MCTX1 Data Center

MCTX1 serves as an internet exchange point that facilitates telecommunications traffic between the United States and Mexico via fiber optic lines. The current facility is equipped with 1.5 megawatts of power supplied through underground electricity lines, supported by backup generators. It handles traffic from 46 unique carrier networks and features two carrier-neutral "meet-me-rooms" where different carrier networks can physically connect to exchange data.

The company describes MCTX1 as "South Texas' premier carrier hotel and data center destination," with Chase Tower being referred to as a "digital cornerstone."

Details of the Expansion

According to records from the Texas Department of Licensing and Regulation (TDLR), 1547 is planning a $5.3 million renovation of the existing MCTX1 data center. The project is scheduled to start later this month and will increase the facility's size to nearly 24,000 square feet. Construction could take up to a year, according to TDLR records.

The company’s fact sheet provides additional details about the expansion. It mentions plans to boost the power capacity from 1.5 megawatts to 5 megawatts and to undertake a "significant overhaul of the entire central cooling plant."

Strategic Reasons Behind the Investment

McAllen's strategic location near the Mexican border and other parts of Latin America makes it an ideal site for a data center focused on international internet traffic and commerce. 1547 believes that the area is well-suited to avoid issues like data lag that often occur at larger hubs located in major metropolitan areas. Additionally, the region has lacked sufficient "middle-mile infrastructure" to connect end users with the broader internet backbone. The company sees MCTX1 as a solution to this gap.

In a blog post profiling MCTX1, the company states: "As the most interconnected building in South Texas, Chase Tower is more than just a data hub—it's a gateway for economic opportunity and digital transformation across the U.S.–Mexico border."

Additional Information

For those interested in staying updated on developments related to this expansion and other tech news, there are newsletters available. Readers can also find more information on the original article from HAWXTECHnantonio.com. Other recent updates include closures of local restaurants in San Antonio and the opening of a new H-E-B store along Loop 1604. Additionally, TxDOT reported a partial blockage of Loop 410 following an 18-wheeler crash.