Z Squared Acquires Energized Arkansas Campus to Advance AI Infrastructure Strategy

Z Squared Inc. (Nasdaq: ZSQR) has closed its acquisition of Paradox Data, LLC from Paradox Infrastructure LLC, bringing the energized Union County Campus in El Dorado, Arkansas, into its computing infrastructure portfolio. The deal marks a significant step for the company as it seeks to establish a foothold in the AI colocation market, giving Z Squared its first owned, energized campus and a foundation from which to advance its planned AI infrastructure business.

The Union County Campus currently has electric service already flowing under an existing interruptible service arrangement with Entergy Arkansas, LLC for up to approximately 8.0 MW. That existing grid connection provides a starting point for phased conversion into high-density space for customers that bring and operate their own computing equipment. Paradox Data, LLC also holds contractual rights to acquire adjacent land and a development pathway targeting 150+ MW of AI-ready capacity over time through a combination of utility power and on-site generation. However, expansion beyond the existing service arrangement will depend on additional power arrangements, customer commitments, financing, permitting and construction. Capacity above the existing service arrangement is a development target and is not currently contracted, energized or delivered.

"In August we told our shareholders to judge us on four things: whether the Paradox acquisition closes, whether we sign our first paying tenant and megawatt commitments, whether energized capacity at Union County grows beyond the current 8 megawatts, and whether we add sites without taking on debt," said David Halabu, Chief Executive Officer of Z Squared. "We have met our first goal. We closed, we paid in stock, and we took on no debt to do it. Union County gives us power already flowing, land under contract for expansion, and a path to pursue 150+ megawatts of AI-ready capacity. The work now is the first phase: the engineering, the power planning and the first customer commitment. We will report against those same four measures as we go. Our intention is for Union County to be the first owned campus rather than the only one, subject to the same discipline we have applied here."

With the acquisition complete, Z Squared's near-term priorities at Union County include first-phase high-density electrical and cooling design, utility and on-site generation planning, advancing the adjacent land acquisition, and securing the first binding customer request for service. The company has engaged A2 Advisors, a strategic advisory and executive management firm focused on digital infrastructure, to support site-development planning, project delivery, vendor and partner alignment, and leasing and capital strategy at the campus. Union County is intended to contribute to Z Squared's previously announced Phase 1 objective of developing 100 MW of AI-ready capacity across multiple U.S. sites. The company's approach is to acquire energized, grid-connected properties and deploy conversion capital site by site against customer commitments and operational readiness.

The acquisition was completed entirely in stock, with no cash paid at closing and no debt financing incurred for the transaction. The move reflects a growing trend among infrastructure companies to secure powered sites as AI-driven demand for high-density computing capacity continues to surge across the United States. By acquiring an already energized campus, Z Squared avoids the lengthy timelines and regulatory hurdles often associated with securing new grid connections, positioning itself to potentially capture early-mover advantages in the competitive AI colocation market. Additional information regarding the transaction, including the material terms of the purchase agreement, is contained in the company's Current Reports on Form 8-K filed or to be filed with the U.S. Securities and Exchange Commission.