X2M Finds a Faster Route to a 10MW Queensland AI Data Centre

Queensland Site Adds 10MW to X2M’s Contracted Capacity

X2M Connect Limited (ASX:X2M) has secured a second foothold in the data centre market, signing an agreement for a planned 10MW AI-enabled facility in regional Queensland. The site already has local government development approval and a 2.5MW grid connection, giving the project a more advanced starting point than a purely prospective development.

The agreement grants X2M binding exclusivity over the site and its power capacity for 60 days. Commercial terms are still to be agreed, while binding long-form agreements are targeted within 90 days. That distinction matters: the announcement establishes a defined opportunity, but it does not yet set out X2M’s margin, funding arrangements or final revenue terms.

Together with its first binding data centre agreement, X2M now has 20MW under agreement and an aggregate estimated project cost above $500 million. Its wider prospective pipeline remains above 200MW, although the company has not disclosed how quickly the remaining opportunities might convert into binding projects.

Grid Power Starts at 2.5MW Before a Larger Energy Build

The Queensland project is intended to be delivered in stages. The initial phase would use the existing 2.5MW grid connection, while the developer plans to build behind-the-meter generation to supply the remaining 7.5MW under a power purchase agreement. That additional power is expected to be available by the end of calendar 2028.

The staged approach is designed to bring forward the point at which the site can begin operating, while leaving the full 10MW dependent on construction of the additional generation. X2M says its platform is intended to manage energy, cooling and environmental systems across both grid-supplied and on-site power.

X2M Targets Delivery Margin and Recurring Platform Income

X2M intends to provide its Managed Delivery service across the facility’s design, engineering, supply, installation and commissioning. The project is estimated to cost $250 million, and the company expects to manage elements of that overall cost and earn a margin, followed by recurring revenue from AI-enabled facility management and a potential token revenue share.

Those revenue streams remain prospective rather than quantified. The filing does not disclose X2M’s expected margin, the amount of capital it would need to commit, or the terms of any token-related arrangement. The immediate milestones are therefore less about the headline 10MW figure than the conversion of exclusivity into binding documents and the confirmation of commercial economics.

X2M’s strategy is centred on regional Queensland and Northern Territory sites, where it says land and power can be assembled more readily than at metropolitan campuses. Its platform is also intended to deliver more compute from each available megawatt, an important proposition in a sector where grid capacity can constrain construction. Whether that efficiency translates into durable customer demand and acceptable project returns will become clearer as the first contracted sites move from agreement to delivery.