X2M Lands 5-Year Deal to Power AI Data Centre Rollout Across Regional Australia
X2M secures strategic partnership to deploy AI-powered platform across regional data centre network
X2M Connect (ASX:X2M) has signed a five-year strategic partnership agreement with Resi Ventures, an established Australian property developer with approximately $900 million in projects. The partnership will see X2M’s AI-enabled platform deployed to manage energy and infrastructure systems across a planned network of regional data centres, beginning with the Miners Rest Renewable Energy Integration Precinct (MRREIP) near Ballarat, Victoria.
The agreement provides X2M with a commercial framework for expansion across multiple Australian locations. The company will integrate and manage energy generation, storage, distribution, and data centre environmental conditions through its unified platform, addressing critical resource management challenges in one of Australia’s fastest-growing infrastructure sectors.
The MRREIP project, located approximately 10 kilometres northwest of Ballarat, represents the first deployment under the partnership. This partnership positions X2M in the data centre infrastructure sector with a structured pathway for multi-site deployment across regional Australia.
When big ASX news breaks, our subscribers know first
What is edge computing and why regional data centres matter
Edge computing refers to processing power located closer to end users rather than concentrated in major city hubs. This approach reduces latency and improves performance for AI and cloud applications, particularly benefiting underserved regional communities.
The edge computing segment represents a high-growth opportunity within the broader data centre market. Regional edge facilities face complex multi-vendor energy management challenges that require the exact capabilities X2M’s platform provides.
As demand for computing power accelerates, the ability to efficiently connect and manage energy across diverse devices has emerged as a key constraint for data centre growth. X2M’s platform is designed to address this challenge by unifying multiple systems into a single, AI-powered management interface.
MRREIP precinct to integrate data centre capacity up to 100MW with renewable energy infrastructure
The MRREIP precinct is planned to include:
- Data centre with capacity ranging from 10MW to 100MW
- 10+ MW battery energy storage system
- Heavy electric vehicle charging infrastructure
- Anaerobic biodigester
- Connections to regional renewable energy zones
X2M’s specific role involves managing electricity, heating and cooling exchanges between the data centre and other precinct services, leveraging two spring lakes on the site. The project requires customary regulatory and planning approvals before proceeding.
The integrated nature of the precinct demonstrates how data centre infrastructure is increasingly being designed to incorporate renewable energy sources and energy storage systems. X2M’s platform will coordinate these diverse components through a single unified interface.
X2M’s platform addresses critical energy management challenge for data centres
As global demand for computing power accelerates due to artificial intelligence and cloud services, managing energy and water efficiently has emerged as a key constraint for data centre growth. X2M’s solution integrates and manages energy generation, storage, distribution, and environmental conditions through a single unified interface.
In a data centre environment, X2M can connect:
- Generators
- Battery storage
- Solar inverters
- EV chargers
- HVAC systems
- Grid meters
- Building environment sensors
The platform is manufacturer and protocol agnostic, enabling connectivity regardless of device type or communications standard. By connecting multiple devices into a real-time system, operators can optimise performance, predict faults, and respond dynamically to changing environmental and grid supply conditions.
The platform aggregates data in real time and applies advanced analytics and automated control to optimise energy usage, provide predictive maintenance, and facilitate autonomous system responses through AI-driven insights.
Australian data centre market projected to require $135 billion investment by 2035
| Market Segment | Current Value | 2029 Projection | 4-Year CAGR |
|---|---|---|---|
| Australian Edge Computing | approximately A$1.2 billion | A$3.6 billion | 31.6% |
| Total Data Centre & Connectivity Investment (to 2035) | Up to A$135 billion | ||
While Australia’s data centre infrastructure has traditionally been concentrated in metropolitan hubs such as Sydney and Melbourne, regional areas remain underserved. The rise of edge computing is accelerating demand for regional data centres, with the segment projected to grow rapidly from approximately A$1.2 billion to A$3.6 billion by 2029.
Regional edge data centres face the same complex multi-vendor energy management challenges as hyperscale facilities, but with less standardised infrastructure and fewer management tools available. The scale of projected infrastructure investment and the high growth rate of the edge computing segment underscore the commercial opportunity for X2M’s platform in this sector.
Platform proven at scale with 500,000+ devices connected across 89 customers
X2M has established an operational track record with more than 500,000 devices connected across 89 enterprise and government customers globally. The platform has been deployed across multiple application areas spanning 5G connectivity, smart water, street lighting, public safety, gas, renewable energy, and smart communities.
The company maintains a geographic presence across five key regions: Japan, South Korea, Taiwan, the Middle East, and Australia. This diversified footprint demonstrates the platform’s adaptability across different markets and regulatory environments.
The platform’s deployment across data centres follows a period of accelerating revenue growth for X2M, with Q3 FY26 revenues rising 67% while operating costs grew just 2%, demonstrating the operating leverage embedded in the company’s SaaS and device-connection model.
X2M generates revenue through a diversified model:
- Hardware sales
- Recurring SaaS and platform fees
- Device connection charges
The proven deployment at scale across multiple sectors and geographies demonstrates the platform’s adaptability to the data centre market. A single technology layer underpins the business—X2M’s AI-enabling industrial scale data aggregator, which connects any device on any network.
Management views partnership as major growth opportunity
CEO Mohan Jesudason
“The Resi Ventures partnership represents a major opportunity to establish a foothold in an emerging infrastructure category. Data centres have a fundamental energy management problem, and it is only set to grow as demand increases. Every megawatt of capacity depends on connecting and optimising a vast number of devices in real time. That is exactly what our platform is designed to do.”
Mr Jesudason added that the partnership provides an opportunity to establish compelling data centre based multiuse precincts in one of the fastest-growing infrastructure sectors globally, while supporting the development of regional communities through advanced digital infrastructure.
Anthony Braunthal, Co-Founder of Resi Ventures
“Regional Australia represents one of the most compelling and underserviced opportunities in the national data centre pipeline, and the tailwinds are only accelerating as AI-driven demand grows. Beyond the economics, there is a real socio-economic story here — regional communities deserve the connectivity and jobs that come with this infrastructure. In X2M, we have found a world-class platform that can unify energy and data management at industrial scale. That combination of purpose-designed infrastructure and proven technology is what gives us genuine confidence in rolling out integrated energy and data precincts with X2M.”
Mr Braunthal noted that the combination of purpose-designed infrastructure and proven technology provides genuine confidence in rolling out integrated energy and data precincts with X2M.
The next major ASX story will hit our subscribers first
Strategic positioning across high-growth infrastructure verticals
The Resi Ventures partnership fits within X2M’s broader strategy to expand across high-growth infrastructure verticals. The data centre market now joins X2M’s existing application areas, creating multiple revenue pathways for the company’s core technology platform.
Mr Jesudason stated that this initiative together with X2M’s broader business in the smart city ecosystem positions the company well in a number of related verticals with large growth prospects where the company has proven capability. The five-year agreement provides a structured pathway into the data centre sector while leveraging existing platform capabilities and customer relationships.
X2M’s data centre push is one of several infrastructure verticals the company is pursuing concurrently, with smart community deployments targeting Australia’s retirement village sector now structured under a separate 10-year contract model alongside the Resi Ventures arrangement.
The partnership combines X2M’s scalable platform and proven technology with a multi-year commercial framework, positioning the company to capitalise on accelerating demand for regional data centre infrastructure. As Australia’s data centre and connectivity infrastructure investment trajectory continues, X2M has established a foothold in a sector projected to require up to $135 billion in investment by 2035.
Want the Next Tech Infrastructure Winner in Your Inbox?
Join 20,000+ investors receiving FREE breaking ASX tech news within minutes of release, complete with in-depth analysis. Click the “Free Alerts” button at StockWire X to get real-time alerts on high-growth technology stocks the moment market-moving announcements break.