Key Highlights

• X2M Connect has entered a non-binding Partnership agreement with Ethical Development Fund Australia to develop a 20 to 45MW high-density GPU data centre and green energy precinct in North Queensland.

• The five-year agreement provides a framework for expansion across multiple Queensland and Australian locations for precincts of between 10MW and 100MW capacity.

• This is X2M's third data centre agreement, following a binding agreement announced 27 August 2026 involving an estimated project cost exceeding A$250 million and a non-binding agreement announced 1 September 2026.

• Australia's data centre and connectivity infrastructure Investment requirement is projected at up to A$190 billion by 2030, according to McKinsey & Company.

Third Partnership Agreement Signed

X2M Connect Limited (ASX:X2M) has entered a non-binding partnership agreement with Ethical Development Fund Australia (EDFA), an Australian infrastructure development and investment company, to develop a high-density GPU AI data centre and integrated energy precinct of between 20 and 45 megawatts capacity in North Queensland. The agreement is the third data centre-related announcement X2M has made within approximately two weeks, following a binding agreement announced on 27 August 2026 — involving an estimated project cost exceeding A$250 million — and a non-binding partnership agreement announced on 1 September 2026.

Partnership Structure and Terms

The five-year agreement provides a framework for expansion across multiple Queensland and Australian locations, with precincts considered ranging from 10MW to 100MW in capacity. The agreement may be terminated or extended by mutual written agreement or replaced by a precinct-specific agreement executed by both parties. X2M's stated role under the partnership encompasses delivery of data centre infrastructure and potential ongoing management, generating Revenue across both the establishment phase and operations phase. The initial proposed data centre in North Queensland is being developed within a green energy precinct, with existing renewable power generation to be augmented by other green energy sources from nearby locations.

X2M's Technology Platform Role

Under the arrangement, X2M's platform would connect energy generation, storage, distribution and data centre environment sensors across the precinct into a single AI-powered management system. The company describes this as a "natural extension" of its existing business, noting its platform is connected to more than 500,000 devices globally and has delivered outcomes including a 19% leak detection uplift in water applications, 20% logistics cost savings in gas monitoring, and forecasts approximately A$1,000 per home in annual electricity savings in electricity management applications. For data centre environments, X2M positions its platform as optimising power, cooling and water systems — the primary operational cost drivers in high-density GPU compute infrastructure.

About EDFA and North Queensland Context

EDFA is described as an investment and development firm focused on infrastructure projects combining commercial returns and positive social or environmental outcomes, with activities spanning renewable energy, low-carbon liquid fuels, renewable diesel and sustainable aviation fuel, waste-to-energy and other sustainable infrastructure. The firm represents landowners interested in data centre development opportunities, particularly those leveraging renewable power sources. North Queensland is noted as offering land and power at a scale suited to high-density AI workloads. Precincts considered under the partnership will require customary regulatory and planning approvals.

Market Scale and X2M's Broader Strategy

Australia's data centre and connectivity infrastructure investment requirement is projected to be up to A$190 billion by 2030, according to McKinsey & Company research cited in the announcement. X2M has articulated a two-product-to-market strategy involving Managed Delivery and Platform Services for data centre clients. The company generates revenue through service fees, hardware sales, recurring SaaS and platform fees, and device connection charges across five key geographies including Japan, South Korea, Taiwan and the Middle East, in addition to Australia.

Conclusion

X2M Connect (ASX:X2M) has secured its third data centre partnership agreement in approximately two weeks, adding a non-binding arrangement with EDFA for a 20-45MW GPU AI data centre and green energy precinct in North Queensland. The five-year framework agreement provides scope for expansion across multiple locations. X2M's role spans data centre infrastructure delivery and ongoing AI-powered platform management. The non-binding nature of the agreement means it does not constitute a commercial commitment, and all precincts will require regulatory and planning approvals before progressing to construction.