KIDZ AI acquired a minority stake in Huading Development, becoming a strategic partner in Cambodia’s premier operational Tier III data center. The agreement secures priority access to 1 MW of power, exclusive rights to future expansions, and direct integration with three international submarine cable networks.
-- KIDZ AI Inc. (Nasdaq: KIDZ; KIDZW) (“KIDZ AI” or the “Company”), an education technology company advancing AI infrastructure and GPU compute initiatives alongside its core EdTech operations, today announced that it has entered into a strategic transaction designed to establish an AI infrastructure and GPU compute platform in Southeast Asia.
Cambodia's National Cloud Data Center
The facility at the center of the transaction is Cambodia's first Tier III data center and has been designated by the Royal Government of Cambodia as the country's national cloud data center. Operational and energized today, the facility is designed for 99.98% uptime and supported by dual-feed utility power with redundant transformers, backup generators, and redundant UPS and precision cooling systems. It is carrier-neutral, with twelve interconnection providers available on site, and connects to three international submarine cable systems linking the country to Hong Kong, Vietnam, Malaysia and Singapore, with onward connectivity to additional international routes available on demand.
Transaction Overview
Under the transaction agreements, KIDZ AI has agreed, subject to customary closing conditions, to acquire a 2.0% minority equity interest in HUADING DEVELOPMENT (CAMBODIA) CO., LTD., owner and operator of the facility, establishing KIDZ AI as a strategic equity partner. In connection with KIDZ AI’s acquisition, KIDZ AI will secure contractual priority rights to capacity at the facility, including a three-year right of first refusal to lease up to 1 MW of data center load in one or more tranches and a 30-day exclusive right of first offer on future capacity expansions. The tranche structure is designed to allow KIDZ AI to scale deployments in phases, in step with customer demand, while the right of first offer on expansions provides a pathway to additional and higher-density capacity as the facility grows.
Management Commentary
“In AI infrastructure, the scarcest asset is not GPUs — it is power that is already energized, cooled and connected to the network,” said Stephanie Luo, Chief Executive Officer of KIDZ AI. “Cambodia's national cloud data center would give us that today, without the multi-year timeline of building from the ground up — and a base from which to build across Southeast Asia.”
Strategic Rationale
Southeast Asia's digital economy is expanding rapidly, driven by generative AI adoption, data localization requirements and government-backed sovereign AI programs. Regional supply of AI-ready capacity has not kept pace: available sites are constrained by power, cooling and network latency, and new facilities take years to energize. KIDZ AI's approach is to secure a position in operational, energized infrastructure now — beginning with capacity suited to enterprise AI and inference workloads, and expanding toward higher-density deployments through its rights on future facility growth — rather than waiting to compete for capacity once the imbalance widens.
The structure will enable KIDZ AI to build a regional AI data center and compute pipeline, expand its enterprise AI infrastructure offering and pursue additional deployment opportunities across Southeast Asia. It will also complement KIDZ AI's previously announced GPU compute initiatives, extending the Company's infrastructure strategy from North America into one of the world's fastest-growing digital markets.
The consummation of the acquisition of the 2.0% minority equity interest in HUADING DEVELOPMENT (CAMBODIA) CO., LTD. is subject to various closing conditions including but not limited to the completion of business, legal, financial and technical due diligence by KIDZ AI and the receipt of all regulatory approvals and third-party consents. Accordingly, no assurance can be given that the equity acquisition will be consummated, that KIDZ AI will exercise its capacity rights or rights of first refusal contained therein or that the anticipated benefits of the transaction will be realized.
About KIDZ AI Inc.
KIDZ AI Inc. (Nasdaq: KIDZ; KIDZW) is an AI-driven education technology company developing proprietary learning systems that combine artificial intelligence, AI agents and robotics. The Company is also pursuing opportunities in AI compute infrastructure, GPU cloud platforms and related data-center ecosystems.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the anticipated closing of the acquisition of the minority interest, the Company's ability to exercise its capacity rights, and the Company's AI infrastructure and GPU compute strategy. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on KIDZ AI's current beliefs, expectations and assumptions regarding the future of KIDZ AI's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of KIDZ AI's control including, but not limited to: the parties' ability to satisfy closing conditions and consummate the transactions described herein; the risk that the anticipated benefits of the transactions may not be realized; KIDZ AI's ability to exercise its capacity rights and the technical configuration, capacity, costs, and timing of any GPU compute deployment; risks associated with international operations, including political, regulatory, currency and enforcement risks in Cambodia and Southeast Asia; KIDZ AI's ability to execute its business model, including obtaining market acceptance of its products and services; KIDZ AI's financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; KIDZ AI's ability to obtain the GPUs and related equipment necessary to perform its obligations under existing agreements and achieve its goals and expected results; KIDZ AI's ability to maintain the listing of its securities on Nasdaq; changes in KIDZ AI's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects and plans; KIDZ AI's ability to attract and retain a large number of customers; KIDZ AI's future capital requirements and sources and uses of cash; KIDZ AI's ability to attract and retain key personnel; KIDZ AI's expectations regarding its ability to obtain and maintain intellectual property protection and not infringe on the rights of others; changes in applicable laws or regulations; and the possibility that KIDZ AI may be adversely affected by other economic, business, and/or competitive factors. These risks and uncertainties also include those risks and uncertainties indicated in KIDZ AI's filings with the SEC. KIDZ AI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
Any forward-looking statement made by KIDZ AI in this press release is based only on information currently available to KIDZ AI and speaks only as of the date on which it is made. KIDZ AI undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.
Contact Info:
Name: KIDZ AI Inc.
Email: Send Email
Organization: KIDZ AI Inc.
Phone: 800-345-9588
Website: http://kidzai.com
Release ID: 89202223
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