X2M Connect Extends AI Data Centre Strategy Into Darwin

Gateway DC Brings 2GW Darwin Ambition

X2M Connect Limited (ASX:X2M) is tying its data centre push to Gateway Datacentres’ planned northern Australian infrastructure platform, signing a non-binding two-year MOU that could span projects from 120MW to more than 2GW. Gateway is developing sovereign, hyperscale-ready campuses in Darwin, positioned near a subsea cable corridor connecting Australia with Asia.

The proposed arrangement gives X2M a potential role in Gateway’s projects while giving Gateway access to X2M’s prospective customer and site pipeline. The companies also intend to pursue data centre opportunities across specific Australian regions and potentially Southeast Asia, although the MOU is non-exclusive and does not commit either party to a project.

AI Platform Sits at the Centre

X2M proposes to provide environmental and energy management capability across Gateway’s campuses, potentially tracking green energy, carbon and other emissions across multiple energy sources. Its proposed platform would connect energy generation, storage, distribution and data centre environmental sensors into a single AI-enabled management system.

That model could give X2M two revenue streams: delivery fees for designing and building infrastructure, followed by recurring platform and management fees once facilities are operating. Gateway, in turn, may support X2M’s customers with design oversight, project planning, supply-chain management, request-for-quotation activity and construction delivery. Gateway is already conducting due diligence on X2M’s prospective pipeline of more than 200MW, according to the announcement.

Commercial Value Still Needs Contracts

The headline numbers are substantial, but they describe development ambitions rather than contracted capacity. The MOU allows the parties to negotiate referral fees, commissions, revenue sharing and service fees separately. No project value, customer commitment, delivery timetable or guaranteed platform revenue is disclosed in the announcement.

X2M CEO Mohan Jesudason said the company was moving its data centre prospects from evaluation towards partnership agreements and contracts, adding that environmental, energy management and ESG platform services could create significant potential for its Platform Services business. The MOU follows X2M’s recently disclosed data centre arrangements, including a binding agreement with an estimated project cost above $250 million, but this new agreement itself remains non-binding.

Binding Agreements Become the Test

For investors, the next meaningful milestone is conversion: whether the parties sign binding project, service, referral or revenue-sharing agreements, and whether Gateway’s Darwin campuses secure the approvals, financing and customer commitments needed to advance beyond the roadmap stage. Until then, the MOU expands X2M’s strategic reach and potential pipeline without establishing near-term financial certainty.