X2M Connect has secured a non-binding five-year partnership to develop AI-enabled GPU data centre precincts in regional Queensland, boosting its project pipeline to over 200MW and integrating its AI management platform across energy and environmental systems.
- Non-binding partnership for 10-100MW GPU data centres
- Pipeline surpasses 200MW with Queensland focus
- AI platform integrates energy and environmental management
- Five-year framework allows expansion across Australia
- Follows $250 million binding data centre contract
Queensland Partnership Lifts Data Centre Pipeline Significantly
X2M Connect Limited (ASX:X2M) has inked a non-binding partnership agreement with an Australian master developer to build high density GPU AI data centre and integrated energy precincts ranging between 10MW and 100MW in regional Queensland. This deal pushes X2M’s prospective data centre pipeline beyond 200MW, marking a substantial expansion of its footprint in a market forecasted to require up to $190 billion in infrastructure investment by 2030.
The partnership covers a five-year term and establishes a framework for rolling out similar precincts across multiple Queensland and Australian locations. X2M will be responsible for delivering the data centre infrastructure and potentially managing ongoing operations, unlocking revenue streams from both construction and platform services phases.
AI-Enabled Platform at the Core of Efficiency Gains
Central to X2M’s offering is its AI-powered management platform, which consolidates energy generation, storage, distribution, and environmental sensors, including water, temperature, and humidity, into a unified real-time control layer. This integration is critical for high density GPU compute facilities where power, cooling, and water systems dictate the usable compute capacity.
The platform, already connected to over 500,000 devices globally, has demonstrated efficiency improvements such as a 19% uplift in water leak detection and significant electricity savings. Applying this technology to data centres aims to optimise operational costs and environmental performance, a vital differentiator in a sector under increasing sustainability scrutiny.
Strategic Momentum Follows Major $250 Million Contract
This announcement follows X2M’s binding agreement announced on 27 August 2026 for a GPU-accelerated AI data centre project in Queensland valued at over $250 million. Together, these agreements underscore X2M’s growing role in Australia’s emerging AI compute infrastructure market.
CEO Mohan Jesudason highlighted that the dual approach of Managed Delivery and Platform Services is resonating with customers, balancing upfront revenues with recurring SaaS income. He also noted the company’s broader smart city portfolio, which serves over 90 enterprise and government clients and targets a total addressable market exceeding $750 million.
Regulatory Approvals and Customer Identity Remain Pending
The partnership is subject to customary regulatory and planning approvals, and X2M has not disclosed the customer’s identity, citing no material impact on the company’s securities. The company commits to updating the market on any material developments under the agreement.
Bottom Line?
X2M’s expanding data centre pipeline and AI integration position it well in Australia’s burgeoning GPU compute market, but project execution and regulatory milestones will be critical to watch.
Questions in the middle?
- How quickly will regulatory approvals be secured for the new precincts?
- What financial terms and project timelines will emerge from this non-binding agreement?
- How will X2M balance capital requirements between its smart city and data centre ambitions?