X2M lifts GPU data centre pipeline past 200MW with second Australian partnership
X2M Connect Limited (ASX: X2M) has signed a non-binding partnership agreement with an Australian master development company to develop high density GPU AI data centre and integrated energy precincts of between 10MW and 100MW capacity in regional Queensland.
The agreement is X2M’s second data centre precinct partnership, lifting the Company’s prospective pipeline above 200MW. The initial proposed data centre is being developed as part of an innovative technology precinct in Queensland.
Running for five years, the deal establishes a framework for further expansion across multiple Queensland and Australian locations. A second signed agreement in the sector signals repeatable demand and, in the words of management, provides validation for X2M’s broader data centre strategy.
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What the partnership covers
The agreement runs for five years from execution and provides a framework for expansion to additional regional precincts across Queensland and Australia. It may be terminated or extended by mutual written agreement, or replaced by a precinct-specific agreement executed by both parties.
The current agreement is X2M’s second such arrangement, building on its first data centre partnership with Resi Ventures, which anchored a site near Ballarat targeting up to 100MW alongside battery energy storage and renewable energy connections.
The precincts may require customary regulatory and planning approvals. X2M has confirmed it will update the market on material developments under the partnership.
Under the arrangement, X2M is being engaged to deliver the data centre infrastructure and then potentially manage it on an ongoing basis, earning revenue across both phases. Its role across the precinct spans several functions:
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Establishment and coordination, including introducing suppliers and operators of data centre equipment
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Tenant acquisition
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Energy infrastructure delivery
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Environmental and facility management
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Behind-the-meter management and precinct networking
The dual-phase engagement is structured to generate upfront delivery revenue alongside potential ongoing recurring revenue, should X2M continue to manage the precinct after construction.
The dual revenue model driving the strategy
Central to X2M’s approach is a two-product go-to-market strategy built around Managed Delivery and Platform Services. According to the Company, this combination provides both upfront revenues from infrastructure delivery and ongoing software-as-a-service (SaaS) revenues from the platform layer.
CEO Mohan Jesudason described Platform Services as “a mandatory component of any commercial arrangement in this space,” underscoring the recurring nature of the revenue the platform is designed to capture.
CEO Commentary
“Securing a second partnership agreement is encouraging validation of X2M’s data centre strategy and underlying demand in the sector. Our strategy of taking two products to market, Managed Delivery and Platform Services appears to be working in our favour with prospective customers. From the Company’s perspective it provides an attractive balance of upfront revenues and on-going SaaS revenues for our platform which is a mandatory component of any commercial arrangement in this space.” said Mohan Jesudason, Chief Executive Officer.
Why AI-enabled management is the market edge
High density GPU compute places the greatest demand on power, cooling and water systems. The efficiency of those systems determines how much usable compute a facility can deliver for every megawatt built.
X2M’s platform is designed to bring energy, water, temperature, humidity and environmental systems into a single real-time management layer, regardless of manufacturer or communications standard. In practical terms, it connects energy generation, storage and distribution alongside data centre environmental sensors into one AI-powered management system.
The Company positions this as a natural extension of its core business, which is already connected to 500,000+ devices globally. That same platform has delivered measurable efficiency outcomes across other applications.
| Application | Result Delivered |
|---|---|
| Water | 19% leak detection uplift |
| Gas monitoring / logistics | 20% logistics cost savings |
| Home electricity | ~$1,000 per home in annual savings |
By applying this efficiency capability to data centres, X2M aims to position its platform as an ongoing management layer rather than a one-off build, reinforcing the recurring-revenue thesis behind Platform Services.
The market opportunity
The timing aligns with substantial forecast demand for digital infrastructure. Australia’s data centre and connectivity infrastructure investment is projected to require up to $190 billion by 2030, according to McKinsey & Company (15 April 2026).
This latest agreement follows a separate binding data centre agreement announced on 27 August 2026, which carries an estimated project cost in excess of $250 million. That $250 million-plus figure relates to the earlier binding deal and does not apply to the current non-binding partnership.
That earlier binding data centre contract, conditional only on development approval, is expected to see X2M recognise the full project cost as revenue across a three-to-five-year delivery period, with recurring platform and management fees payable across the life of the facility.
Smart City core business continues to grow
The data centre expansion sits on top of an established and growing base business. X2M’s Smart City digitisation portfolio serves over 90 enterprise and government customers, with a total addressable market of over $750 million within this customer group.
The Company maintains a global footprint, with government and enterprise relationships across Japan, South Korea, Taiwan and the Middle East. This existing, revenue-generating core provides the foundation on which the newer data centre strategy is being built.
What comes next
The five-year framework enables expansion to additional regional precincts across Queensland and Australia, either through the existing agreement or via precinct-specific agreements that may follow. The partnership remains non-binding, and individual precincts may require customary regulatory and planning approvals.
X2M has confirmed it will update the market on material developments under the partnership as they arise.
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