X2M expands data centre pipeline with Gateway DC MOU
X2M Connect Limited (ASX: X2M) has entered a non-binding Memorandum of Understanding (MOU) with Gateway Datacentres Pty Ltd (Gateway DC), an Australian developer of sovereign, hyperscale-ready data centre campuses. The two-year, non-binding agreement marks the fourth major data centre development for X2M in under a month, following announcements on 27 August, 1 September, and 10 September 2026.
Gateway DC has an initial 120MW of capacity and a five-phase roadmap extending to a long-term 2GW+ northern digital platform. This latest MOU builds on X2M’s prior binding agreement (estimated project cost in excess of $250M) and two previous non-binding partnership agreements, adding further weight to X2M’s 200MW prospective pipeline of potential data centre sites.
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What the MOU covers
The MOU establishes a collaboration framework for the marketing, sale, and delivery of data centre capability across specific regions of Australia, and potentially throughout South East Asia. Each party retains ownership of its customer relationships. The arrangement is non-exclusive, with referral fees, commissions, revenue sharing, and service fees all subject to separate binding agreements.
| X2M’s Contribution | Gateway DC’s Contribution |
|---|---|
| Data centre environmental and energy management capability | Design oversight and project management planning |
| Introduction of potential customers and development partners | Supply chain management and RFQ management |
| Green energy, carbon and emissions tracking (may include multiple energy sources) | Build-out program management |
| AI-enabled management platform connecting energy generation, storage, distribution, and environmental sensors across a precinct into a single system | Due diligence services on X2M’s 200MW prospective pipeline of sites, helping validate and prioritise them for execution |
The platform’s potential to generate recurring revenue is explicitly subject to the execution of separate binding agreements and should not be treated as confirmed at this stage.
Why Darwin? Understanding Gateway DC’s strategic position
Darwin’s geography makes it a compelling location for data centre infrastructure targeting Asian markets. As Australia’s closest major city to Asia, and a developing gateway landing point for subsea cable connectivity, Darwin offers low latency connections to the region that other Australian capitals cannot match.
“Hyperscale-ready” refers to data centres built at a scale capable of serving major cloud providers, with the infrastructure to expand rapidly as demand grows. “Sovereign” means the data remains under Australian jurisdiction, an increasingly important consideration for government and enterprise customers.
Gateway DC’s campuses are also designed with regulatory scrutiny in mind. Tightening rules around data centre energy and water consumption are a growing concern across the industry, and Gateway DC addresses this through staged, right-sized development, renewable energy integration, and water-efficient design from the outset.
The GPU angle is equally relevant for X2M’s value proposition. High-density GPU factories, which power artificial intelligence workloads, generate significant heat and consume large amounts of energy. Managing that environment precisely requires exactly the kind of integrated, AI-enabled platform that X2M proposes to provide across Gateway DC’s projects.
Building a data centre business — X2M’s revenue model and pipeline
X2M’s data centre business model operates across two layers. The first is delivery fees earned during the design and construction phase of each facility. The second, and longer-term, component is recurring platform and management revenue generated across the life of each facility.
The recurring revenue element is the key investment consideration. If X2M’s platform is deployed across a growing number of sites, each new facility compounds the base of ongoing fee income. The AI-enabled management system described in the MOU, connecting all energy, storage, distribution, and environmental sensors into a single platform, is the mechanism through which that recurring revenue would be generated, subject to binding agreements.
The pipeline is building at pace. Within approximately three weeks, X2M has announced a binding agreement with an estimated project cost exceeding $250M, two non-binding partnership agreements, and now this MOU with Gateway DC. Gateway DC is currently conducting due diligence on X2M’s 200MW prospective pipeline of sites, working to validate and prioritise those opportunities for execution.
For investors exploring how the 200MW prospective pipeline was assembled, our detailed coverage of X2M’s 200MW pipeline milestone tracks the second non-binding Queensland partnership that pushed the total above that threshold and outlines the five-year framework enabling expansion across multiple Australian locations.
X2M’s first binding data centre contract, announced in late August 2026, carries an estimated project cost exceeding $250 million and is conditional solely on development approval, with X2M already contracted to provide the design services supporting that approval process.
X2M 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. Delivering on this will require services from partners like Gateway DC and the high density GPU factory providers. The opportunity to provide environmental, energy management and ESG related platform services to Gateway DC for their large data centre projects delivers huge potential for the X2M Platform Services business.”
Gateway DC CEO Jon Lim
“We are pleased to be working with X2M in this mutually beneficial arrangement. X2M has the capability to provide new and innovative platform services for our Darwin based data centre projects and Gateway DC has the experience and leadership to assist X2M in delivering data centres to its landowner customers.”
The MOU remains non-binding, and any commercial arrangements between the two parties will require separate binding agreements before revenue can be recognised. However, the pace and breadth of X2M’s data centre pipeline announcements across September 2026 signal a business in active deal construction rather than early-stage exploration.
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