Z Squared to Acquire Paradox Data, Adds 8MW Capacity and 150MW Power Target
ZSQR•Z Squared has signed a binding LOI to acquire a majority interest in Paradox Data’s Union County Campus via Series D Convertible Preferred Stock with a $5 million liquidation preference. The 170-acre site in El Dorado, Arkansas offers 8 MW power and aims for 150 MW of firm capacity.
1. Acquisition Structure
Z Squared entered a binding letter of intent to acquire a majority membership interest in Paradox Data LLC in exchange for newly designated Series D Convertible Preferred Stock carrying a $5 million aggregate liquidation preference. The transaction requires definitive documentation, completion of due diligence, receipt of required consents and approvals, and any necessary stockholder votes before closing.
2. Campus Assets and Development Plan
Paradox’s Union County Campus in El Dorado, Arkansas spans 170 acres with M-1 zoning, an existing 8 MW utility connection, and a binding contract for a ten-acre land parcel. Z Squared plans to deploy a hybrid on-grid and behind-the-meter natural gas generation campus to deliver up to 150 MW of continuous firm power, supported by two pipelines with a combined 40,000 dekatherms per day, direct Union Pacific rail access, and redundant 400 Gbps fiber connectivity.
3. Strategic Rationale
The acquisition adds energized power, developable land and immersion-cooled compute assets critical for AI and high-performance computing workloads. This move aligns with Z Squared’s strategy to lead with power, convert sites into AI-ready colocation facilities, and scale deployments site by site under signed customer contracts and operational readiness.
