Local string models are those where Standard Model degrees of freedom arise on a small region inside a large bulk volume. I study threshold effects on gauge coupling running for such models. The Kaplunovsky-Louis formula for locally supersymmetric gauge theories predicts the unification scale should be the bulk winding mode scale, parametrically large than the string scale where divergences are naively cut off. Analysis of explicit string models on orbifold/orientifold geometries confirms this. The winding mode scale arises from the presence of tadpoles uncancelled in the local model. I briefly discuss phenomenological applications to supersymmetry breaking and gauge coupling unification.