5C AI data center at former Fred's headquarters
Also called: 5C MEM01
A Montreal-based company, 5C, is turning the empty former Fred's headquarters in southeast Memphis into an AI data center. It has about 20 megawatts now and plans to grow to 35 megawatts. It asked for a 15-year tax break.
Where things stand: 5C bought the building for $25 million. Drone video in January 2026 showed construction and what looked like turbines. A tax break request is still waiting for review.
🕒 Latest update (June 2026): Records showed 5C MEM01 LLC bought the property for $25 million.
What we know
- 📍 Where4300 Getwell Road, the former Fred's headquarters and warehouse (geocoded with the Census geocoder), Memphis, Shelby County
- 🏢 Company5C (5C MEM01 LLC)
- 🏛️ Owned byHypertec
- ⚡ Power it needs20 megawatts (about as much as 16,000 homes)
- 💸 Tax breaksAsked for a 15-year PILOT (property tax break) from EDGE in Nov. 2025; not yet reviewed as of June 2026.
- 👷 Jobs promised15
❓ Still unanswered
Nobody has answered these in public yet. Can you help find out?
- Are gas turbines being used on site, and do they have an air permit? 🙋 I'll find out
- Is the 5C data center already running? 🙋 I'll find out
- Will EDGE approve the 15-year tax break? 🙋 I'll find out
What happened so far
- May 20255C filed plans with Shelby County to turn the former Fred's building into a data center, starting at 15 megawatts.
- Nov 20255C asked EDGE for a 15-year property tax break, promising 15 jobs.
- Jan 2026Drone video showed construction behind the building, including what looked like turbines.
- June 2026Records showed 5C MEM01 LLC bought the property for $25 million.
Local votes and rules
⏸️ Pause on new data centers
Memphis City Council is voting on a one-year pause on new data centers and AI or crypto computing sites. During the pause the city would not process rezonings, site plans or building permits for them. Existing data centers that do not expand are exempt. It passed the second of three votes unanimously on Sept. 1, 2026. The final vote was delayed twice; on Oct. 6 the council voted 7-5 to push it to Oct. 20, 2026.
⚖️ Court case
The Southern Environmental Law Center, for the NAACP and Young, Gifted & Green, appealed the Shelby County Health Department's air permit that lets xAI run 15 gas turbines at its South Memphis data center. They also object to how the department handled dozens of turbines that ran without a permit. We did not find a decision.
An aerial photo of the area.
Where this comes from
- Data center company purchases Fred's headquarters building for $25 million, records show · FOX13 Memphis · June 10, 2026
- Data center coming to former Fred's wants 15-year PILOT · Daily Memphian · Nov 17, 2025
- 5C plans data center in Memphis, Tennessee · Baxtel · May 6, 2025
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