Z Squared Inc. Signs Definitive Agreement to Acquire 100% of Paradox Data and Its Union County Campus

Z Squared Inc. (Nasdaq: ZSQR) has announced a definitive agreement to acquire 100% of Paradox Data, LLC for a total transaction value of up to $25 million. The deal, which was signed on August 3, 2026, includes $20 million contingent on the achievement of specific development milestones at Paradox Data's Union County Campus, a data center development site located in El Dorado, Arkansas. The consideration for the acquisition will be entirely in the form of Series A Convertible Preferred Stock, with no cash payable at closing.

Paradox Data, LLC is focused on developing AI compute and high-density data infrastructure at its Union County Campus. This site is strategically positioned to support Z Squared's growth objectives, particularly its aim to establish 100 MW of AI-ready capacity across multiple U.S. locations. Currently, the campus has an existing electric service arrangement with Entergy Arkansas, providing for energy service of up to 8.0 MW, with plans to expand capacity to 150 MW through a combination of utility power and on-site generation. The acquisition aligns with Z Squared's strategy of enhancing its AI infrastructure capabilities, which is increasingly critical in the evolving digital landscape.

The structure of the transaction emphasizes a performance-based approach, with $20 million of the consideration tied to the successful completion of four defined development milestones. These milestones include the initial energization of AI compute capacity and subsequent capacity thresholds of 50 MW, 100 MW, and 150 MW. This structure is designed to ensure that Z Squared's investment is closely aligned with operational execution and capacity readiness, thereby mitigating financial risk while supporting growth.

Z Squared has engaged A2 Advisors, a strategic advisory firm specializing in digital infrastructure, to assist with the development of the Union County Campus. A2 Advisors will provide expertise in site development planning, project delivery, and capital strategy, which will be crucial as Z Squared transitions the campus into a fully operational data center. The collaboration is expected to enhance the efficiency and effectiveness of the development process, ultimately contributing to Z Squared's goal of scaling its AI infrastructure capabilities.

The acquisition of Paradox Data underscores the growing demand for AI-ready data centers as businesses increasingly rely on advanced computing capabilities. As companies continue to invest in AI technologies, the need for robust infrastructure that can support high-density computing workloads will become more pronounced. This transaction positions Z Squared to capitalize on these trends, enhancing its competitive edge in the rapidly evolving digital infrastructure market. The successful execution of this acquisition and the subsequent development of the Union County Campus could serve as a bellwether for future investments in AI infrastructure across the sector.