Key Highlights

  • X2M Connect entered a binding agreement giving it 60 days of exclusivity over a site and power capacity for a 10MW AI-enabled data centre in regional Queensland.
  • The company estimates the project cost at A$250 million and targets long-form binding agreements within 90 days.
  • Of the 10MW, 2.5MW would come from an existing grid connection and 7.5MW from behind-the-meter generation to be built by the developer.

X2M Connect Limited (ASX:X2M) has entered a binding agreement with an unnamed Queensland developer giving it exclusivity over a site and its power capacity for a 10MW AI-enabled data centre. The company describes it as exclusivity rather than a fully binding delivery contract: the exclusivity period is 60 days, commercial terms remain to be agreed, and long-form binding agreements are targeted within 90 days.

The Facility would be in regional Queensland, and the exact site is not specified. X2M says local government development approval for a data centre is already in place. On power, 2.5MW would come from an existing grid connection, with the remaining 7.5MW supplied from behind-the-meter generation that the developer would build, under a power purchase agreement. X2M expects power to be available by the end of 2028 and refers to it as available for 10 years.

The company estimates the project cost at A$250 million. It has not detailed how that would be funded, saying only that it expects to manage the elements of the full project cost through its compute and graphics processing unit partnerships.

Commercial terms

X2M Connect (ASX:X2M) expects to earn a project margin, recurring fees for AI-enabled facility management and a potential share of token revenue. Its services would run for the life of the asset. Delivery would be staged, with an initial stage using existing grid capacity, and the company expects earlier completion and Revenue recognition from that stage. The announcement does not break down the Margin or say when revenue would start.

With the agreement, X2M says it has 20MW under agreement, following its first binding agreement on 27 August 2026, representing an estimated project cost above A$500 million. It describes a pipeline exceeding 200MW, mostly in Queensland.

Conditions and caveats

Several matters remain open. Commercial terms have not been agreed, and the long-form agreements are yet to be signed. The 7.5MW balance of power depends on the developer building generation capacity that is not yet confirmed. Funding for the A$250 million cost is not detailed, and the revenue and cost figures are company estimates. The announcement has no dedicated risk section, but X2M says it assesses power, land and approvals at each site before signing.

Next steps

The confirmed milestones are the 60-day exclusivity window and the 90-day target for long-form binding agreements.