H5 Data Center, Nashville, Tennessee

The data center at 147 Fourth Avenue North in downtown Nashville, Tennessee, is a 19,700-square-foot carrier hotel that H5 Data Centers and the investment firm Novacap took over from 365 Data Centers in early 2026.

H5 and Novacap formed a joint venture, HyscaleIX Data Centers, to buy and run carrier hotels, and anchored it with three sites bought from 365 in Buffalo, Nashville and Tampa, DCD reported on Feb. 3, 2026. "Carrier hotels are highly sought-after data centers that perform a critical role in core network ecosystems," said Ted Mocarski of Novacap. The price was not disclosed, and H5 no longer lists a second Nashville facility it once had at 211 Commerce Street.

Nashville has just written its first rules for the large data centers now being planned around the city. On July 21, 2026 Metro Council unanimously passed two bills from Councilmember Rollin Horton that ban data centers larger than 500,000 square feet, limit others to heavy industrial areas behind a special-exception process with a public hearing, and restrict them near homes, schools and parks. The council also passed Councilmember Courtney Johnston's moratorium on new data center permits through Dec. 1, 2026, which does not affect data centers already operating. The push followed news in May that the Atlanta company DC Blox planned a data center next to the Nashville Zoo, and Mayor Freddie O'Connell has moved to buy that property through eminent domain because DC Blox applied for permits before the new rules passed. "Passing this legislation is just the beginning of necessary restrictions," resident Emily Otnes said.

The moratorium runs until Dec. 1 while Metro Council considers more legislation, including possible rules on decommissioning.