A computing company agreed to buy a data center development site using stock as the only currency, with 80 percent of the price payable only if the site hits specific build-out targets. That arrangement, called milestone-based consideration, ties payment to defined development events rather than to the closing of the deal itself.
The Arkansas campus
Z Squared Inc. (Nasdaq: ZSQR) signed a definitive agreement on August 3, 2026 to acquire 100% of Paradox Data, LLC, expanding a deal that began as a majority-interest purchase under a letter of intent dated June 25, 2026. The target asset is the Union County Campus at 713 Industrial Road, El Dorado, Arkansas, a data center development site with an existing interruptible power arrangement with Entergy Arkansas for up to 8.0 MW and a land contract covering adjacent property.
How the $25 million is structured
Total consideration reaches up to $25 million, all in newly designated Series A Convertible Preferred Stock of Z Squared. No cash is due at closing and no debt is involved. At signing, $5.0 million of preferred stock converts to common shares at a fixed price of $7.45 per share. The remaining $20.0 million is earned across four milestones: initial energization of AI compute capacity at the existing site, then aggregate capacity thresholds of 50 MW, 100 MW, and 150 MW, each paid only after a binding service request is received and that capacity is energized.
A related-party note
Z Squared's Chief Technology Officer, Jeffery Harris, holds an indirect minority ownership interest in Paradox Infrastructure LLC, the seller, and in Paradox Energy, the entity designated to receive the milestone proceeds. The company disclosed this relationship in the filing.
What exists now versus what is targeted
The site carries 8.0 MW of interruptible power today. The 150 MW figure is a development pathway, not installed capacity. Z Squared has retained A2 Advisors, a digital infrastructure advisory firm, to lead site development, vendor alignment, and leasing strategy. The broader Phase 1 goal covers 100 MW of AI-ready capacity across multiple U.S. locations.
Closing is expected within 30 days of signing, with an outside date of September 30, 2026, extendable to December 31, 2026.