Z Squared Inc., a computing infrastructure company expanding into AI, has announced the closing of its acquisition of Paradox Data LLC from Paradox Infrastructure LLC, bringing the energized Union County Campus in El Dorado, Arkansas, into its portfolio.
The campus, Z Squared’s first owned, energized campus, will serve as a platform from which it will advance its planned AI colocation business. According to a press release, the campus has an existing interruptible service arrangement with Entergy Arkansas, LLC for up 80 MW.
“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, Z Squared Chief Executive Officer.
The Union County Campus can be expanded to 150 MW of AI-ready capacity thanks to contractual rights to acquire adjacent land held by Paradox Data. Additional power can be acquired over time through utility and on-site power generation.
“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,” Halabu added.
Z Squared reports that it has engaged with A2 Advisors to support site-development planning, project delivery, vendor and partner alignment, and leasing and capital strategy at the campus. The Union County Campus is part of Z Squared’s Phase 1 objective where it intends to develop 100 MW of AI-ready capacity in the US.
Z Squared’s CEO outlined the firm’s AI infrastructure plans last month, highlighting that it is looking to court neocloud operators by acquiring powered sites where operators can place their own hardware. The company aims to fund its acquisitions with stock, not cash. According to Halabu, the acquisition of Paradox Data was paid for in US$ 5 million of Series A Convertible Preferred Stock, which can be converted into common stock at closing. Another US$ 20 million would be paid if certain power milestones were achieved.