A New Jersey data center company is planning a massive $5.3 million expansion of its footprint in South Texas, aiming to cement its role as the "internet gateway between Mexico and the U.S."
1547 Critical Systems Realty is planning to expand its existing data center operations in the Rio Grande Valley, according to Texas Department of Licensing and Regulation, or TDLR, records, which are subject to change. The company, which is headquartered in Matawan, New Jersey, and operates nearly a dozen data centers across the country, already has a center in McAllen, the largest city in Hidalgo County.
Where is the 1547 data center located?
The McAllen data center, which 1547 calls MCTX1, is located inside the Chase Tower, a 17-story commercial office building located at 200 S. 10th St. - one of the busiest commercial corridors in the city. Chase Tower serves as the home to businesses such as Chase Bank, the Spanish-language news network, Telemundo 40, and the corporate headquarters of Rhodes Enterprises, one of the Valley's largest property development companies. 1547 calls the Chase Tower "the most interconnected building in South Texas."
What is the MCTX1 data center?
According to 1547, MCTX1 is an internet exchange location that handles telecommunications traffic between the United States and Mexico using fiber optic lines. The current facility boasts 1.5 megawatts of power supplied through underground electricity lines, which are backed up by generators. MCTX1 relays traffic for 46 unique carrier networks and offers two carrier-neutral so-called "meet-me-rooms" that allow carrier networks to physically connect to each other to exchange data.
1547 calls its MCTX1 data center "South Texas' premier carrier hotel and data center destination" and Chase Tower a "digital cornerstone."
How is MCTX1 expanding?
1547 is planning a $5.3 million renovation of the existing MCTX1 data center, according to TDLR records. The renovation is slated to begin later this month and will expand the data center's footprint to nearly 24,000 square feet. Construction could take a year, TDLR records show. But 1547's website offers a little more insight into what to expect. For instance, in a fact sheet about MCTX1, the company states it intends to increase power capacity from 1.5 megawatts to 5 megawatts. It's also planning a "significant overhaul of the entire central cooling plant."
Why is 1547 investing in developing a data center in McAllen?
For 1547, McAllen's proximity to Mexico, as well as the rest of Latin America, makes it the prime location to establish a data center that can handle international internet traffic and commerce - one that can avoid the pitfalls, such as data lag, that can occur at larger hubs located in major metros. Further, the Valley has long lacked sufficient "middle-mile infrastructure" to connect the internet's end users with the internet's larger backbone infrastructure. It's a gap 1547 hopes MCTX1 will fill.
"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," the company states in a blog post profiling MCTX1.
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