Duos Edge AI has signed a non-binding term sheet with Zero Latency for a proposed structured lease covering all 15 of it

Duos Technologies Group, Inc., a Nasdaq-listed company based in Jacksonville, Florida, announced on August 13, 2026 that its subsidiary Duos Edge AI has executed a non-binding term sheet with 0Lat LLC, known as Zero Latency, to lease the company's entire edge data center portfolio. The transaction encompasses fifteen edge data center sites spanning Texas and Georgia with a combined 225 cabinets.

The proposed transaction is designed to support Zero Latency's distributed compute operations. The Duos Edge AI portfolio would serve as backbone capacity for Zerogrid, Zero Latency's distributed inference network, which currently serves telecom, fiber, physical AI, and enterprise customers. While this marks the companies' first formal transaction, their teams have previously collaborated on edge data center initiatives.

Michael Huerta, CEO of Zero Latency, stated: "AI grids hinge on innovation through decentralization. Inference is moving locally, where context is created and managed. We provide compute for the use cases that hyperscalers aren't able to serve. We are excited to partner with Duos on this portfolio."

During the 90-day mutual exclusivity period, the parties will conduct confirmatory due diligence, including verification of the company's invested capital across the portfolio, and will work to finalize the structure, pricing, and payment terms. Both parties intend the definitive transaction to be structured as a true lease for accounting, tax, and financing purposes.

CEO Doug Recker of Duos commented: "This term sheet reflects our strategy of converting capital we've already deployed into our edge portfolio into contracted, recurring revenue. Zero Latency brings a committed go-to-market partner for our Texas and Georgia sites, and this exclusivity period allows us to move quickly toward a definitive structure that works for both companies."

The term sheet is non-binding except regarding exclusivity, confidentiality, and expense provisions, with no assurance that the parties will ultimately reach a definitive agreement or agreement on ultimate terms, timing, size, or structure.