Z Squared, a Fort Lauderdale-based vertically integrated digital infrastructure company listed on Nasdaq, has entered into a binding letter of intent to acquire 100% of Skycore Digital, an operating digital infrastructure company with three active sites in North Carolina powered by Duke Energy. The transaction is structured entirely in Series B Convertible Preferred Stock with no cash consideration and no debt financing, with a base aggregate liquidation preference of $18 million at closing and maximum consideration of $22 million.
Skycore operates approximately 24 megawatts of energized power capacity currently connected to the Duke Energy grid, with an additional 18 megawatts available through existing Duke Energy Letters of Authorization, providing a defined path to up to 42 megawatts of total potential capacity. Spectrum high-speed fiber internet service is expected to be activated at two of Skycore’s three sites in the coming weeks, further positioning the assets to support AI inference, high-performance compute, and other power-dense workloads. The acquisition adds operational, energized infrastructure at a time when grid access, interconnection, and power availability have become critical constraints for AI deployments.
The parties have agreed to a 90-day exclusivity period, with the acquisition expected to close within 60 days of executing a definitive purchase agreement, subject to customary closing conditions. Z Squared currently operates computing infrastructure across North Carolina, South Carolina, and Iowa, with operations spanning crypto mining, power generation, data center development, and high-performance compute hosting.
KEY QUOTES:
“Power now and room to scale are what Skycore delivers. In this market, megawatts and interconnection are among the scarcest resources in AI infrastructure. You cannot conjure them on demand. Skycore comes to us already energized and connected to the Duke Energy grid, with a defined path to 42 MW and an experienced operations team that knows how to scale. We are adding real, operational, energized infrastructure without touching our cash position and without creating a single dollar of debt.”
Michelle Burke, Co-Chief Executive Officer, Z Squared
“We are evaluating additional opportunities with similar characteristics and remain focused on acquiring operational infrastructure where power is already secured and AI expansion is clearly defined.”
David Halabu, Co-Chief Executive Officer, Z Squared
