X2M Connect (ASX: X2M) Secures 10MW Queensland Data Centre Site

X2M Connect has signed an agreement covering a proposed 10-megawatt AI-enabled data centre in regional Queensland, adding a second project to its emerging data centre business. The facility has an estimated project cost of $250 million, although the commercial terms and binding long-form agreements are still to be finalised.

The agreement gives X2M binding exclusivity over the site and its power capacity for 60 days. The company and the unnamed Queensland developer are targeting execution of long-form agreements within 90 days, making completion of that process the next key step.

X2M intends to provide its Managed Delivery service across the facility’s design, engineering, supply, installation and commissioning. It expects to manage elements of the full project cost and earn a project margin, followed by recurring revenue from managing the facility through its AI-enabled platform. The arrangement may also include a token revenue share.

Importantly, the stated $250 million is an estimated project cost rather than contracted revenue for X2M. The announcement does not quantify the company’s expected margin, recurring fees or potential revenue share.

Existing power supports staged development

The site already has local government development approval for a data centre and a 2.5-megawatt grid connection. X2M plans to use that capacity for the initial stage, allowing work to proceed before the full power requirement is available.

The developer intends to construct behind-the-meter renewable generation to supply the remaining 7.5 megawatts under a power purchase agreement. That additional power is expected to become available by the end of calendar 2028, taking the proposed facility to its full 10-megawatt capacity.

X2M’s platform is intended to manage energy, cooling and environmental systems across the grid-connected and behind-the-meter supplies. The company says its technology is designed to reduce the electricity required for a given amount of computing capacity, addressing the power constraints affecting data centre development.

Data centre portfolio reaches 20MW

The Queensland agreement follows X2M’s first binding data centre agreement, announced on 27 August 2026. Design work has confirmed that project’s initial capacity at 10 megawatts.

Across the two projects, X2M now has 20 megawatts of data centre capacity under agreement, carrying an aggregate estimated project cost of more than $500 million. It also has a prospective pipeline exceeding 200 megawatts, mostly in Queensland, but that broader pipeline includes non-binding agreements and should be distinguished from committed capacity.

The regional data centre strategy extends X2M beyond its established smart-city technology operations. Its core platform currently supports more than 90 customers across five geographies and has connected more than 500,000 devices. For the new Queensland project, the immediate commercial issue is whether exclusivity converts into definitive agreements and how much of the project economics ultimately accrues to X2M.