- 01X2M signs for a second 10MW Queensland AI data centre, lifting capacity under agreement to 20MW.
- 02The proposed project is estimated at $250m; commercial terms remain to be finalised.
- 03X2M’s prospective data centre pipeline exceeds 200MW.
X2M Connect (ASX: X2M) has signed an agreement for a 10-megawatt AI-enabled data centre in regional Queensland, lifting its capacity under agreement across two projects to 20MW.
The proposed facility—which carries an estimated project cost of $250 million—would be delivered and managed through X2M’s Managed Delivery and platform services businesses.
The arrangement grants X2M binding exclusivity over the site and its power capacity for 60 days, although commercial terms remain to be settled with long-form agreements targeted within 90 days.
Alongside a previously agreed 10MW project, X2M now has more than $500m in aggregate estimated project costs across the two developments, alongside a prospective pipeline exceeding 200MW.
Local Government Approval
The Queensland site already has local government development approval for a data centre and an existing 2.5MW connection to the electricity grid.
X2M plans to use that capacity for an initial stage, potentially allowing development and revenue generation to begin before the entire facility has power available.
The developer intends to build behind-the-meter renewable generation supplying the remaining 7.5MW through a power purchase agreement, with availability expected by the end of 2028.
Under the proposed arrangements, X2M’s AI-enabled platform would manage energy, cooling and environmental systems across both the grid connection and the on-site generation.
The developer’s planned power infrastructure and the existing approvals shorten some preliminary steps, but the full capacity and commercial delivery remain subject to future arrangements.
Project Delivery and Revenue Model
X2M intends to oversee design, engineering, supply, installation and commissioning through its Managed Delivery service, drawing on its compute and graphics processing unit partnerships.
It expects to manage elements of the estimated project expenditure and earn a margin, followed by recurring income from AI-enabled facility management and potentially a share of token-related revenue.
Those anticipated earnings are not contracted revenue, with the final scope and commercial arrangements still being negotiated with the Queensland developer.
The company is pursuing modular developments in less populated parts of Queensland and the Northern Territory, where projects can expand as grid access or dedicated generation becomes available.
Its platform is designed to reduce the electricity needed for a given computing workload, although no quantified efficiency improvement has been disclosed for this project.
Broader Pipeline Grows
The new agreement follows X2M’s first binding data centre arrangement in August, under which design work has confirmed an initial 10MW capacity.
X2M says its broader prospective pipeline remains above 200MW, with most of the identified sites located in Queensland and including non-binding opportunities.
“This agreement will bring both our Managed Delivery and Platform Services products to this Queensland site,” chief executive officer Mohan Jesudason said.
“Our focus is now on delivery and on converting the balance of our pipeline, including the partnership agreements already announced.”
As well as data centre development, X2M continues to operate its smart city digitisation business, through which it supplies connected-device and software services to utility and government customers.
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