A major tech redevelopment is headed to Southeast Memphis as 5C MEM01 Inc. announces plans to invest $152 million to transform the former Fred’s headquarters into a state-of-the-art data center serving cloud, enterprise, and artificial intelligence companies.
The project—first reported in April and now detailed through filings with the Economic Development Growth Engine (EDGE)—will convert a 1 million-square-foot shipping facility on New Getwell Road into a high-performance computing hub.
Based in Springfield, Ohio, 5C MEM01 Inc. specializes in designing, building, and operating advanced data centers that power AI and cloud-based technologies. In its PILOT application, the company outlined a strong commitment to economic and workforce development in Memphis.
While the facility is projected to create 15 high-paying jobs, those positions come with an average salary of $103,000, highlighting the project’s focus on high-skill, high-wage employment.
The site will operate 11,000 graphical processing units (GPUs). For comparison, xAI’s supercomputer—also located in Memphis—runs approximately 200,000 GPUs, further underscoring the city’s growing role in advanced computing and digital infrastructure.
In its filing, the company emphasized the significance of the investment:
“This project represents a significant private investment that will strengthen Memphis’s role in the regional technology economy and support long-term community growth. The company plans to work with local partners and workforce development programs to create high-quality technology and operations jobs while advancing Memphis’s position as a center for digital infrastructure and innovation.”
As Memphis continues to attract large-scale technology projects, redevelopments like this signal a rising momentum in positioning the city as a competitive hub for AI, data processing, and next-generation innovation.
