Z Squared Details Power Strategy for AI Infrastructure Sites

Z Squared outlined a plan to acquire power connected sites and convert them for AI infrastructure, announced in a press release. In a shareholder letter, CEO David Halabu said the company is focusing on sites with existing grid connections rather than new sites that may face three to five year interconnection queues.

The company said its planned acquisition of Paradox Data and its Union County campus in El Dorado, Arkansas, is the first test of that strategy. The site has about 8 megawatts of active capacity, a targeted 50 megawatt utility interconnection, and a longer term target of up to 150 megawatts through utility supply and onsite generation.

Z Squared said its Phase 1 target is 100 megawatts of AI ready capacity across multiple U.S. sites. The company said it plans to provide power, cooling, fiber, security, and operations for neocloud operators that bring their own computing hardware.

The Paradox deal is structured entirely in stock. Z Squared said it would issue $5 million of Series A convertible preferred stock at closing, with up to $20 million more tied to power milestones. The company reported $15.5 million in cash, $13.5 million in working capital, and no outstanding debt as of June 30, 2026.