X2M Connect Ltd Advances Ballarat AI Data Centre Precinct After Land Settlement
Ballarat land settlement kicks off X2M’s first integrated data centre precinct
X2M Connect Limited (ASX:X2M) has confirmed that its development partner Resi Ventures has completed settlement on land located approximately 10 kilometres from Ballarat’s central business district in regional Victoria. The site is the intended location of the first integrated data centre and energy infrastructure precinct under the five-year partnership announced on 11 June 2026.
The settlement marks the first key milestone in progressing the partnership from agreement to delivery. Development of the precinct remains subject to customary planning and regulatory approvals.
Through the partnership, X2M is planning to become the “AI-enabling integration layer” for the precinct, bringing circular economy assets together in a single platform. The precinct is planned to host a data centre of between 10 and 100 MW capacity, supported by a 10+ MW battery energy storage system.
X2M and Resi Ventures are targeting 10-20% savings on the estimated $15m per annum energy bill for a 10MW data centre through optimised resource usage. The broader opportunity is substantial, with Australia’s data centre and connectivity infrastructure investment projected to require up to A$135 billion by 2035.
| Metric | Figure | Why it matters |
|---|---|---|
| Precinct capacity | 10–100 MW | Scale for AI compute workloads |
| Energy savings target | 10–20% | On estimated $15m/yr bill (10MW site) |
| Australian DC investment need | Up to A$135bn by 2035 | Size of addressable opportunity |
| Contracted FY27 revenue | ~A$3m | Existing momentum base |
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What the precinct will include
The precinct is being designed as a high-density facility capable of supporting AI compute workloads, including GPU-based server racks. According to the announcement, it is intended to operate at a significantly lower cost due to the integrated circular economy elements built into its design.
The planned precinct components include:
- Data centre of 10–100 MW capacity
- 10+ MW battery energy storage system
- Heavy electric vehicle charging
- Anaerobic biodigester
- Hot house horticulture
- Connections to regional renewable energy zones
These circular economy elements are positioned as the source of the precinct’s cost advantage. By integrating energy generation, storage and complementary uses on a single site, the model aims to lower operating costs, a factor that could underpin tenant appeal as AI compute demand grows.
X2M’s role — the intelligent integration layer
X2M is planning to lead the technology development and bring the precinct together as a single integrated system. The Company intends to coordinate the various equipment suppliers and operators needed to build and operate the site, while providing the platform that connects them.
The result, as described in the announcement, gives operators one real-time view across energy generation, storage and dispatch, cooling, high-density GPU-accelerated compute, multi-utility metering and billing, connectivity and public safety.
Under the partnership, X2M plans to provide the following services across the precinct:
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Data centre establishment and coordination, covering business modelling, structuring, partnership formation and project management.
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Professional partner access, introducing suppliers and operators of data centre equipment.
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Tenant acquisition, identifying and engaging prospective data centre service tenants.
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Energy infrastructure delivery, covering the procurement, supply, integration and operation of battery energy storage, solar PV generation, heavy electric vehicle charging and other energy assets.
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Environmental and facility management, providing the ‘Hive.AI by X2M’ platform or equivalent for water, temperature and humidity control, sensor monitoring, and heating and cooling optimisation.
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Behind-the-meter management, covering the installation and operation of electricity, heat, gas and water systems optimised for precinct operations.
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Precinct networking, providing and operating networking infrastructure including private 5G where appropriate.
The platform is described as “device- and network-agnostic” by design, connecting equipment regardless of manufacturer or communications standard within a “patented supported platform.” By converting raw device signals into structured, AI-ready data, it provides the foundation on which AI management applications can be built, giving X2M “a recurring role that continues well beyond the construction phase.”
X2M states this positions it at the “first mile of the AI data supply chain,” an increasingly critical layer as data centre precincts move to deploy AI. The Company is already in discussion with major players in the data centre infrastructure industry as part of establishing the technology ecosystem.
Why the “integration layer” matters
An integration layer is software that sits between the many pieces of hardware in a facility, such as power systems, cooling units, meters and sensors, and pulls their data into a single, unified view. Rather than operators monitoring dozens of separate systems, the layer connects them so the whole site can be managed through one interface.
For AI data centres, this matters because GPU-based compute generates significant heat and draws large amounts of power. As these workloads scale, real-time management of power and cooling becomes central to keeping the facility efficient and available.
For investors, the distinction is between one-time hardware sales and ongoing platform economics. A recurring integration and management role, if realised, generates revenue across the operational life of a precinct rather than only during construction.
A growing pipeline and momentum into FY27
The Resi Ventures relationship now spans both smart residential communities and data centre precincts, following smart community agreements and the data centre development partnership announced earlier in 2026.
The five-year Resi Ventures partnership, announced on 11 June 2026, identified the Miners Rest precinct near Ballarat as the first deployment site and outlined a planned network of regional data centres across Australia, with the Australian edge computing market projected to grow from approximately A$1.2 billion today to A$3.6 billion by 2029.
The two parties are working together on further data centre opportunities across Australia, providing a basis for replicating the circular economy model at additional regional sites over time. Resi Ventures already owns an additional site in regional Victoria, with a further site under negotiation.
This settlement comes as X2M enters FY27 with approximately A$3 million in already-contracted revenue. It follows the Company’s recently announced approximately A$1.1 million City of Seoul contract to supply a further 50,000 HelpMe personal safety devices (ASX announcement, 7 July 2026).
CEO Commentary
“Settlement of the land for the Ballarat site is an important step in advancing our partnership with Resi Ventures. Our role is clear. We aim to bring the technology equipment and operators together and run the precinct as one management system, from energy and cooling through to metering, connectivity and safety. Together with our recent City of Seoul contract, it reflects strong momentum across our smart city business as we enter FY27, and we look forward to progressing the other data centre opportunities with Resi Ventures across regional Australia,” said Mohan Jesudason, CEO and Managing Director of X2M.
Resi Ventures brings considerable development scale to the partnership, with its co-founder outlining the group’s existing portfolio and strategic intent.
Resi Ventures Perspective
“Resi Ventures has a long history of land development in Australia with about $900m in projects under development. Developing regional data centres is an important part of our future growth strategy. In X2M we see the potential to have a partner that will bring significant value to the progression of that strategy. We are excited about the prospects of our partnerships with X2M in the data centre and smart community sectors tapping into their platforms, technical expertise and network ecosystem”, said Anthony Braunthal, co-founder of Resi Ventures.
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The investment case and what to watch next
The land settlement advances X2M’s strategy of extending its smart-city platform business into a recurring role within the AI data centre infrastructure market. The model is described as replicable across regional sites, anchored by a named development partner with an established development pipeline.
The platform operating leverage X2M has demonstrated across its existing customer base is notable: Q3 FY26 revenues grew 67% while operating costs rose just 2%, a dynamic that underpins the recurring-revenue thesis the data centre integration role is designed to extend.
Several factors will shape how the opportunity progresses. Development of the Ballarat precinct remains subject to customary planning and regulatory approvals. Investors may also watch for progression of the second site already owned by Resi Ventures, the further site under negotiation, and agreements with the equipment and operator ecosystem, given X2M is already in discussion with major data centre infrastructure players.
With approximately A$3 million in contracted FY27 revenue and a defined role at the first mile of the AI data supply chain, X2M enters the new financial year positioning itself against a market projected to require up to A$135 billion of investment by 2035. Whether that positioning converts into sustained recurring revenue will depend on the delivery milestones ahead.
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