5C Data Centers filed a $575 million commercial alteration permit on October 6, 2026 for the fourth phase of its MEM01 facility at 4300 Getwell Road in Memphis, covering approximately 504,000 square feet of a former Fred's discount retailer distribution complex. The company, which acquired the 1.1 million-square-foot property for $25 million in June 2026, plans to expand available power from roughly 20 MW to 84 MW over six months using fuel cell technology rather than drawing additional capacity from Memphis Light, Gas and Water, according to 5C Group Chief Revenue Officer Brad Nimri. The planned AI architecture includes NVIDIA GB200 and GB300 NVL72 systems with liquid cooling. The development comes as Memphis is conducting a 90-day policy review and considering a data center moratorium.
The $575 million permit application represents the largest single construction phase yet proposed at the MEM01 site and signals the rapid scaling of AI infrastructure investment in Memphis beyond xAI's Colossus project. The decision to add 64 MW of capacity via behind-the-meter fuel cells rather than utility power illustrates how developers are increasingly routing around grid constraints, a strategy that local governments and regulators are beginning to scrutinize as Memphis weighs new zoning standards.
A named $575M expansion of a major Memphis AI facility signals significant capital commitment and US construction activity. The 'Beyond Colossus' framing suggests a large-scale buildout distinct from previously published Stargate/OpenAI stories.