X2M’s data centre pipeline takes shape with third partnership in under a fortnight
X2M Connect Limited (ASX: X2M) has entered a non-binding partnership agreement with Ethical Development Fund Australia (EDFA), an Australian critical infrastructure development and investment company, to develop a 20–45MW high density GPU data centre and energy precinct in regional North Queensland. The agreement, announced 10 September 2026, is the company’s third data centre partnership in under two weeks, following a binding agreement announced 27 August 2026 (estimated project cost exceeding $250 million) and a non-binding partnership announced 1 September 2026.
The proposed precinct will be developed as an integrated green energy site, with existing renewable power generation to be augmented by additional green energy sources from nearby locations. The five-year agreement framework provides a pathway for expansion across multiple Queensland and Australian locations.
CEO Mohan Jesudason
“X2M is developing a solid pipeline of data centre prospects and methodically taking them from the evaluation stage to partnership agreements and contracts. For this partnership, North Queensland offers land and power at a scale that suits high density AI workloads. 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 will provide 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.”
The announcement arrives against a significant market backdrop: Australia’s data centre and connectivity infrastructure investment is projected to require up to $190 billion by 2030, according to McKinsey (April 2026).
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What X2M actually does in these partnerships — and why it matters
X2M’s role in data centre partnerships spans two distinct revenue phases. The first is Managed Delivery, covering establishment and coordination, introduction of suppliers and operators of data centre equipment, tenant acquisition, energy infrastructure delivery, environmental and facility management, behind-the-meter management, and precinct networking. The second is Platform Services, an ongoing AI-powered management layer that generates recurring SaaS revenue once a precinct is operational.
The specific challenge that makes X2M’s platform relevant to high density GPU compute is power, cooling, and water efficiency. The greater the compute density, the greater the demands placed on these systems, and the efficiency of those systems directly determines how much usable compute a facility can support per megawatt built.
X2M’s platform addresses this by connecting energy generation, storage, distribution, and all data centre environmental sensors into a single real-time management layer, regardless of manufacturer or communications standard. This is not a new capability being developed for the data centre market — it is an extension of the company’s existing core platform, which has already demonstrated:
- 500,000+ devices connected globally
- 19% leak detection uplift in water management
- 20% logistics cost savings in gas monitoring
- Forecast approximately $1,000 per home in annual electricity savings
The dual-revenue structure, upfront delivery revenue followed by recurring SaaS fees, is what distinguishes X2M’s data centre strategy from a single-project opportunity.
X2M pursues these partnerships through X2MDC Pty Ltd, a dedicated data centre subsidiary incorporated to consolidate the company’s AI-enabled infrastructure ambitions under a single commercial vehicle, with mandatory Platform Services embedded into every contract from the outset.
North Queensland precinct details and the EDFA partnership structure
The proposed North Queensland site is designed as an integrated green energy precinct, with a scalable data centre capacity of 20–45MW. Existing renewable power generation at the site is expected to be augmented by additional green energy sources from nearby locations, with carbon-neutral outcomes a stated objective.
EDFA is an investment and development firm focused on infrastructure projects that deliver both commercial returns and positive social or environmental outcomes. Its activities span renewable energy (including LCLFs, renewable diesel, and sustainable aviation fuel), waste-to-energy, and other sustainable infrastructure. EDFA represents a number of landowners seeking to leverage the growing demand for data centres by utilising renewable and green power sources. Director Michael Shekell brings over 20 years of experience in infrastructure and development projects.
EDFA Director Michael Shekell
“We have a number of landowners who are looking to leverage the increasing demand for data centres in Australia and North Queensland which presents many opportunities, with various sources of green power available. We are looking for locations with existing power, water and space for data centres so that we can help address demand while keeping climate change in mind. X2M is helping us evaluate and execute on the opportunities we have identified.”
Precincts considered under the partnership will require customary regulatory and planning approvals.
The table below summarises X2M’s current data centre partnership pipeline across the three agreements:
| Announcement Date | Partner | Agreement Type | Capacity | Est. Project Value |
|---|---|---|---|---|
| 27 August 2026 | Undisclosed partner | Binding | Not specified | >$250M |
| 1 September 2026 | Undisclosed partner | Non-binding | Not specified | Not disclosed |
| 10 September 2026 | EDFA | Non-binding | 20–45MW | Not disclosed |
A platform built for scale — the investment case crystallising
The pace of agreement execution is notable. X2M has moved from its first binding data centre contract to a third partnership agreement in under a fortnight, suggesting the pipeline that management has referenced is converting into documented arrangements at an accelerating rate.
The market opportunity underpinning this activity is substantial. Australia is projected to require up to $190 billion in data centre and connectivity infrastructure investment by 2030 (McKinsey, April 2026), and X2M’s platform, which integrates energy generation, storage, distribution, and all environmental sensors into a single AI-powered management system across any manufacturer or communications standard, is positioned as a differentiated offering in that context.
Investors should note the distinction between the three agreements. The binding agreement announced 27 August 2026, with an estimated project cost exceeding $250 million, represents the revenue-bearing anchor in the pipeline. The two non-binding partnership agreements, including the EDFA arrangement announced 10 September 2026, represent early-stage frameworks and do not imply secured or imminent revenue from those specific arrangements.
X2M’s first binding data centre contract, announced 27 August 2026 with an estimated project cost exceeding $250 million, is conditional on a single condition precedent: development approval, with no further conditions required before full delivery is triggered.
As CEO Mohan Jesudason characterised the approach, X2M is “methodically taking them from the evaluation stage to partnership agreements and contracts” — a pipeline discipline that, if maintained, could convert non-binding frameworks into binding commercial arrangements over time.
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