Duos Edge AI, Inc., a subsidiary of Duos Technologies Group, Inc. (Nasdaq: DUOT), announced it has executed a non-binding term sheet with 0Lat LLC, operating as Zero Latency, for a proposed structured lease covering all 15 of its edge data center sites across Texas and Georgia, totaling 225 cabinets.

Under the term sheet, the two companies have entered a 90-day mutual exclusivity period to complete confirmatory due diligence, including site-level verification of invested capital across the portfolio, and to finalize the structure, pricing, and payment terms of a definitive agreement. The parties intend any final transaction to be structured as a true lease for accounting, tax, and financing purposes.

The proposed lease would support Zero Latency's Zerogrid platform, a distributed edge compute network that serves telecom, fiber, physical AI, and enterprise customers. Zero Latency is headquartered in Charlottesville, Virginia.

"This term sheet reflects our strategy of converting capital we've already deployed into our edge portfolio into contracted, recurring revenue," said Doug Recker, CEO of Duos.

"Inference is moving locally, where context is created and managed," said Michael Huerta, CEO of Zero Latency. "We provide compute for the use cases that hyperscalers aren't able to serve."

The term sheet is non-binding except for its exclusivity, confidentiality, and expense provisions. The company cautioned that there is no assurance the parties will reach a definitive agreement, or as to its ultimate terms, timing, size, or structure. This announcement is based on a press release issued by Duos Technologies Group.