Z Squared signs $5 million Paradox Data deal

• Z Squared signed a binding letter of intent to acquire a majority interest in Paradox Data.
• The deal consideration is $5 million in Series D Convertible Preferred Stock, with no cash or debt financing.
• Z Squared said the transaction supports its expansion into AI infrastructure and high-density compute.

Z Squared (NASDAQ:ZSQR) signed a binding letter of intent to acquire a majority interest in Paradox Data for $5 million in newly designated Series D Convertible Preferred Stock.

The proposed deal gives Z Squared exposure to Paradox Data’s Union County Campus in El Dorado, Arkansas, which includes about 8 MW of energized power and roughly 10 acres of land.

“Energized power and high-density immersion cooling are two of the scarcest and most valuable assets in AI infrastructure today,” said Z Squared Chief Executive Officer David Halabu.

Z Squared said it intends to pursue up to 50 MW of utility interconnection and ultimately target up to 150 MW of firm behind-the-meter power, subject to closing and other conditions.

Following the announcement, Z Squared share price was up at $13.56.

Z Squared said the assets expected to be vested in Paradox Data at closing include technology, data, intellectual property, land rights, and energized power capacity.

The update follows Z Squared’s recent AI infrastructure push, including a $50 million committed equity forward purchase agreement and stated plans to build AI-ready infrastructure site by site.