Z Squared enters a binding agreement to acquire majority stake in Paradox Data for $5 million in Series D Preferred Stoc
Z Squared, Inc., a Nasdaq-listed digital infrastructure company expanding into AI infrastructure, announced on June 25 that it has entered into a binding letter of intent to acquire majority membership interest in Paradox Data LLC, a digital infrastructure company specializing in high-density, immersion-cooled compute for data-intensive workloads. The transaction centers on acquiring Paradox's flagship development asset, the Union County Campus in El Dorado, Arkansas, a large-scale next-generation data center site.
Chief Executive Officer David Halabu stated: "Energized power and high-density immersion cooling are two of the scarcest and most valuable assets in AI infrastructure today, and this transaction would add both, anchored by a campus engineered for firm, large-scale power. Paradox represents exactly the kind of asset that advances our strategy. As we build this company site by site, Paradox is a prime representation of the opportunities we are seeking."
The company views this acquisition as a significant step in expanding into AI infrastructure, adding energized power, developable land, and differentiated immersion cooling technology during a period when grid access, interconnection, and power availability have become critical constraints for AI and high-performance compute deployments. Immersion and liquid cooling systems are increasingly essential to high-density AI and HPC environments, enabling higher rack densities and improved energy efficiency.
The transaction is structured entirely in newly designated Series D Convertible Preferred Stock with no cash consideration and no debt financing. Total consideration consists of Series D Convertible Preferred Stock with a $5 million aggregate initial liquidation preference, issued to sellers pro rata according to their respective ownership. Paradox will continue as a going concern with Z Squared as its majority member.
Under the binding letter of intent, Paradox will transfer its technology, data, and intellectual property; approximately ten acres of land under a binding purchase contract; and approximately eight megawatts of fully operational, energized power capacity. The letter further establishes post-closing milestones under which Z Squared intends to pursue acceptance of an interconnection request for up to 50 megawatts of utility power.
The Union County Campus spans up to 170 acres in El Dorado, Arkansas, pairing an on-grid utility connection with on-site, behind-the-meter power generation. The site currently has an 8 megawatt live on-grid utility connection and is M-1 zoned and permitted. Z Squared intends to develop a behind-the-meter generation campus designed to deliver up to 150 megawatts of continuous, industrial-grade firm power, operating within a pro-development jurisdiction where much of the required infrastructure is already in place.
The company will deploy a hybrid strategy combining the on-grid utility connection with natural gas generation using industrial turbines to deliver firm, non-intermittent power directly to compute loads. Fuel delivery is anchored by two pipelines with combined capacity of 40,000 dekatherms per day through Energy Gas Transfer transmission infrastructure, sufficient to support in excess of 150 megawatts of on-site power generation.
Z Squared, which listed on the Nasdaq Global Market in April 2026, operates advanced computing equipment and is expanding into AI infrastructure. The company's strategy rests on three principles: lead with power by acquiring operating sites where power is already flowing; build for AI workloads by converting that capacity into AI-ready colocation; and scale with discipline by deploying conversion capital site by site against signed contracts and operational readiness.
The transaction is subject to negotiation of definitive documentation, completion of due diligence, receipt of required consents and approvals, and other customary closing conditions, including any stockholder approval required under applicable Nasdaq rules. There can be no assurance the transaction will close on the terms described or at all. Development of the campus to full capacity is a forward-looking objective dependent on completion of the transaction, permitting, equipment procurement, capital deployment, and execution, with no assurance as to timing or amount of generation capacity that will be brought online.