Duos Edge AI, a subsidiary of Duos Technologies Group, has signed a non-binding term sheet with 0Lat (Zero Latency) for a proposed structured lease of its entire 15-site edge data centre portfolio across Texas and Georgia.
The portfolio encompasses 225 cabinets and would support the expansion of Zero Latency’s distributed compute operations.
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The transaction is subject to due diligence and confirmation of site-level readiness.
If completed, the lease is expected to provide backbone capacity for Zero Latency’s distributed inference network, Zerogrid, which serves sectors including fibre, telecom, physical AI, and enterprise customers.
While this would be the first formal transaction between Duos Edge AI and 0Lat, the companies have previously collaborated on edge data centre initiatives and indicated plans to broaden their work in the edge AI segment.
Both parties have entered a mutual exclusivity period of 90 days, during which they will conduct confirmatory due diligence.
This process includes verification of invested capital at each site, as well as negotiations on the definitive structure, pricing, and payment terms.
The companies intend for the final agreement to be structured as a true lease for purposes of accounting, tax, and financing.
Zero Latency CEO Michael Huerta said: “AI grids hinge on innovation through decentralisation. Inference is moving locally, where context is created and managed. We provide compute for the use cases that hyperscalers aren’t able to serve. We are excited to partner with Duos on this portfolio.”
Duos CEO Doug Recker said: “This term sheet reflects our strategy of converting capital we’ve already deployed into our edge portfolio into contracted, recurring revenue.
“Zero Latency brings a committed go-to-market partner for our Texas and Georgia sites, and this exclusivity period allows us to move quickly toward a definitive structure that works for both companies.”
There is no guarantee that a definitive agreement will be reached, nor certainty about its terms, timing, or structure. The term sheet is only binding regarding exclusivity, confidentiality, and expenses.
