Z Squared to Acquire Paradox Data, Expanding AI Infrastructure Pipeline
Z Squared Inc. has agreed to acquire Paradox Data LLC as the computing infrastructure company seeks to expand its portfolio of data center capacity for artificial intelligence workloads.
The agreement covers 100% of Paradox Data’s membership interests, expanding a transaction initially structured as a majority-stake acquisition under a binding letter of intent announced June 25.
Paradox Data’s primary asset is the Union County Campus in El Dorado, Arkansas. The development site has an existing agreement with Entergy Arkansas for up to 8 megawatts of electric service and a contract to acquire adjacent land.
Z Squared said the campus has a development pathway targeting up to 150 megawatts of AI-ready capacity through a combination of utility power and on-site generation. The project supports the company’s previously announced first-phase goal of developing 100 megawatts across multiple U.S. locations.
The acquisition consideration consists entirely of newly designated Z Squared Series A convertible preferred stock. No cash will be paid at closing, and the company will not use debt financing.
Z Squared will issue $5 million in preferred stock at closing, convertible into common shares at a fixed price of $7.45 per share. Paradox Infrastructure may receive up to an additional $20 million in preferred stock after meeting four development milestones at the Arkansas campus.
“This is ‘scale with discipline’ in contract form,” Z Squared CEO David Halabu said. “Eighty percent of the total consideration is earned only as the Union County Campus achieves defined execution milestones.”
Z Squared also engaged A2 Advisors to assist with development planning, project delivery, partner coordination, leasing and capital strategy for the campus.
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