Z Squared to Buy Paradox Data in $5 Million All-Stock Deal
The acquisition would add energized power and immersion cooling to Z Squared’s AI infrastructure portfolio as grid constraints tighten.
**Z Squared, Inc. (ZSQR) agreed to acquire Paradox Data LLC** in a $5 million all-stock transaction, the company said Wednesday. The deal would add energized power capacity, developable land, and differentiated immersion cooling technology to Z Squared’s digital infrastructure portfolio at a time when grid access and power availability have become critical bottlenecks for AI and high-performance computing deployments.
The transaction is structured as an issuance of preferred stock with an aggregate initial liquidation preference of $5 million. No cash consideration or debt financing is involved. Closing remains subject to the negotiation and execution of definitive documentation, completion of due diligence, receipt of required consents and approvals, and other customary closing conditions, including any stockholder approval required under Nasdaq rules.
Z Squared framed the acquisition as a strategic move to secure scarce assets in the AI infrastructure market. "Energized power and high-density immersion cooling are two of the scarcest and most valuable assets in AI infrastructure today, and this transaction would add both, anchored by a campus engineered for firm, large-scale power," said David Halabu, Chief Executive Officer of Z Squared. The company said the assets would complement its existing portfolio of powered land and operational data centers, positioning it to address growing demand for high-density compute workloads.
The deal follows Z Squared’s May agreement to acquire Skycore Digital LLC, which added 24 megawatts of energized power capacity with a path to 42 MW. That transaction was also structured entirely in convertible preferred stock, with a base liquidation preference of $18 million and up to $4 million in additional consideration tied to securing incremental power capacity. Like the Paradox Data deal, the Skycore acquisition was positioned as a response to tightening grid constraints and rising demand for AI-ready infrastructure.
Recent precedent transactions underscore the competitive value of energized power and cooling assets. In June, Rumble Inc. closed its acquisition of Northern Data AG, gaining over 200 MW of unmonetized energy capacity and roughly 22,000 high-end NVIDIA GPUs. The deal immediately lifted Rumble’s revenue outlook and validated its strategy of securing large-scale, power-dense infrastructure to support AI workloads. Similarly, Soluna Holdings Inc. (SLNH) acquired full ownership of Project Dorothy 1A in April, consolidating control of a 150 MW renewable-powered campus to accelerate its transition to AI computing.
Z Squared’s acquisition of Paradox Data is expected to close following the execution of definitive agreements and satisfaction of customary conditions. The company has not disclosed specific accretion or synergy targets but has emphasized the strategic importance of securing differentiated power and cooling assets to support its long-term growth in AI infrastructure.