X2M raises $2M to back AI and data centre expansion

X2M Connect (ASX:X2M) has secured firm commitments to raise approximately $2 million in a placement as it ramps up its push into the fast-growing data centre sector. The placement, priced at $0.004/share, was supported by pro investors and will fund the company’s expansion into data centre sensor integration, platform enhancements, battery energy management, and smart community infrastructure.

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X2M this morning said the cap raising strengthens its balance sheet as it positions itself as a provider of energy management systems and sensor monitoring technology for data centres and their surrounding precincts.

The company aims to help operators reduce energy costs by between 10% and 20%, targeting a market where Australian investment in data centre and connectivity infrastructure is projected to reach as much as $135 billion by CY35.

X2M’s AI-enabled platform is designed to connect devices across multiple manufacturers and communication networks, allowing operators to manage power generation, battery storage, cooling systems, environmental sensors, metering and connectivity through a single real-time platform.

The company said it intends to be involved from the design phase of data centre developments through construction and into long-term operations, generating ongoing platform and SAAS revenue.

The company entered FY27 with ~$3M in contracted revenue, including a recently announced $1.1M contract with the City of Seoul to supply a further 50,000 HelpMe devices.

Following the placement, X2M intends to launch a fully underwritten Securities Purchase Plan to raise a further $1 million on the same or similar terms, allowing existing shareholders to participate.

X2M is trading at $0.40/sh at lunchtime.

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