EQUITY RESEARCH · RESEARCH BRIEF
Z Squared bought an energized AI infrastructure campus without spending cash or adding debt. The market is valuing it as if nothing happens next. Our new research brief explains why we disagree, and what has to go right.
On September 8, 2026, Z Squared closed its acquisition of the Union County Campus in El Dorado, Arkansas. The site has roughly 8 megawatts of live power, in a market where new grid connections can take three to five years. The company paid entirely in preferred stock, struck well above the current share price. Eighty percent of the purchase price is only paid if the campus delivers.
At roughly $142 million (as of the September 21 close), the market is pricing Z Squared’s 50 MW plan at about $2.8 million per megawatt. Contracted AI capacity has traded at headline values roughly ten times that. Those two numbers aren’t measured the same way, and the brief explains exactly why the gap still matters.
Inside the full brief:
- The next catalyst is a signature, not a sale. Why the most important near-term event is administrative, and why it’s easier than winning a tenant.
- The per-megawatt framework. What the market pays for Z Squared’s capacity today versus what contracted capacity has transacted for, with every input sourced.
- A deal structure built for shareholders. No cash, no debt, and 80% of the price earned only on milestones, with $350 million of equity capacity voluntarily walked away from.
- The path to re-rating. Seven observable milestones investors can track, in order.
- What would change our view. The specific developments that would make us step back.
Our rating: Speculative Buy (conditional). Twelve pages, 18 sourced notes, full risk disclosure.
