Highlights

  • X2M signed an agreement covering a proposed 10MW Queensland data centre site.
  • The developer granted 60 days of binding exclusivity over the site and power capacity.
  • An existing 2.5MW grid connection supported the planned first stage.
  • The company targeted long-form agreements within 90 days, with commercial terms still to agree.

X2M Connect (ASX:X2M) supplies smart-city technology and is developing delivery and platform services for regional data centres. Its 23 October 2026 announcement added a Queensland site to that activity. Existing grid access and development approval supported a staged concept, while commercial terms, additional on-site generation and binding long-form documentation remained part of the pathway to delivery.

Site Exclusivity Starts the Next Negotiation Phase

The agreement covered a proposed 10MW AI-enabled facility with local government development approval. It granted X2M binding exclusivity over the site and its power capacity for 60 days.

Commercial terms had not yet been agreed. The parties targeted binding long-form agreements within 90 days, a separate timetable from the initial exclusivity period.

The company intended to provide its Managed Delivery service through design, engineering, supply, installation and commissioning. Ongoing AI-enabled management and platform services would follow for the life of the asset, subject to the arrangements being progressed.

Existing Grid Capacity Supports a Staged Start

The Queensland location had a 2.5MW grid connection. The first stage was intended to use that capacity rather than await the full power requirement for a 10MW development.

The developer planned behind-the-meter renewable generation to supply the remaining 7.5MW under a power purchase agreement. This additional supply was expected to be available by the end of calendar 2028.

The agreement also described power to be generated on site for 10 years. The existing connection and proposed generation were distinct components: only the former was already in place at the announcement date.

Project Cost Differs from X2M's Revenue

Estimated project cost for the proposed facility was AUD 250 million. X2M expected to manage elements of that expenditure through its compute and graphics-processing partnerships and earn a margin on delivery.

The company also expected recurring income from AI-enabled facility management, with a potential token-related revenue share. It did not disclose a quantified delivery margin or recurring revenue forecast for this site.

The AUD 250 million figure therefore described the overall development cost. It was not announced as revenue already contracted to X2M or earnings that the company had recognised.

Two Agreements Sit Within a Larger Pipeline

Together with the earlier data centre agreement, X2M reported 20MW across two projects and aggregate estimated project costs exceeding AUD 500 million. Design work on the first project had confirmed its initial 10MW capacity.

The prospective pipeline remained above 200MW, with most locations in Queensland. It included non-binding arrangements, which were separate from the agreements already announced.

The company targeted modular facilities in less densely populated parts of Queensland and the Northern Territory. Its due diligence assessed power, land and government approval before binding commitments were entered.

Platform Work Follows the Delivery Concept

The proposed platform would manage energy, cooling and environmental systems across grid and behind-the-meter supply. Its intended role was to reduce electricity required for a given level of computing activity.

That capability formed part of X2M's wider technology business, which connected resource devices and sensors to software for real-time data exchange, remote control and predictive information.

For the Queensland project, the immediate milestones remained commercial documentation, staged implementation and additional generation. The announcement set out an intended service model and development sequence, while the prospective benefits depended on subsequent execution.