- Agreement with Queensland developer for 10MW AI-enabled data centre site
- X2M granted binding exclusivity over data centre site and power capacity for 60 days
- Site has existing 2.5MW grid connection and local government development approval for data centre
- 10MW data centre has a project cost of $250 million
X2M Connect (ASX: X2M) has signed an agreement with a Queensland developer for a 10MW AI-enabled data centre site with development approval and with power to be generated on the site for 10 years.
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Under the agreement, X2M has been granted binding exclusivity over the data centre site and its power capacity for 60 days, with commercial terms to be agreed and binding long-form agreements targeted within 90 days.
The agreement follows X2M’s first binding data centre agreement announced in August and sits alongside a series of non-binding agreements that take X2M’s prospective pipeline above 200MW.
CEO, Mohan Jesudason, said X2M intends to provide its managed delivery service across the design, engineering, supply, installation and commissioning of the facility, followed by ongoing AI-enabled platform services and management for the life of the asset.
“X2M is building two strong businesses in smart city digitisation and data centre development,” Mr Jesudason said.
“This agreement gives X2M 20MW of data centre capacity across two projects.
“Queensland is where the majority of our pipeline sits, and this site already has energy and local government approval in place, with planned behind-the-meter generation to carry it to the full 10MW.
“This agreement will bring both our Managed Delivery and Platform Services products to this Queensland site. Our focus is now on delivery and on converting the balance of our pipeline, including the partnership agreements already announced.”
Mr Jesudason said X2M is targeting data centre facilities in low-density population regions of Queensland and the Northern Territory, rather than large metropolitan campuses, placing less demand on the grid and requiring a smaller capital commitment.
The site has an existing 2.5MW grid connection, together with development approval for the data centre.
The data centre will be delivered in stages with the initial stage utilising the existing grid capacity, with faster commercialisation expected given the approvals and power are already in place.
The developer intends to build behind-the-meter renewable generation to supply the balance of the energy under a power purchase agreement, supporting the final 7.5MW and taking the facility to the full 10MW. This power is expected to be available to the site by the end of the 2028 calendar year.
X2M’s platform is intended to manage energy, cooling and environmental systems across both grid-supplied and behind-the-meter supply.
X2M is up 25.0% to 0.5¢ . Mkt cap $7.751M.
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