Z Squared to fund El Dorado project with $15.3 million in equity sales
Z Squared, a Florida-based digital information company, plans to acquire and expand a data center in El Dorado, Arkansas, funding the project with $15.3 million raised through equity sales. Following this announcement, the Union County Quorum Court enacted a moratorium on data centers, intending to review Z Squared's plans and establish operational regulations.
Z Squared, a Florida-based digital information company, has announced plans to acquire a majority stake in Paradox Data LLC and expand its "Union County Campus" data center in El Dorado, Arkansas. The company intends to fund the project using part of the $15.3 million recently raised through equity sales, as disclosed in a filing with the Securities and Exchange Commission.
The deal is still subject to negotiations and stockholder approval. Z Squared's goal is to achieve 100 megawatts of artificial intelligence capacity across multiple U.S. sites.
The announcement took Union County officials by surprise. In response, the Union County Quorum Court approved an ordinance establishing a moratorium on data centers. Union County Judge Mike Loftin indicated that while the moratorium might not halt Z Squared's current plans, it will allow county officials to review the company's intentions and establish specific regulations for data center operations in the county.