X2M Connect signs agreement for $250M data centre

• X2M Connect signed an agreement for a 10MW AI-enabled data centre site in Queensland with an estimated project cost of $250 million.
• The company secured binding exclusivity over the site and its power capacity for 60 days.
• The transaction expands the company's contracted capacity to 20MW and total portfolio value above $500 million.

X2M Connect (ASX:X2M) signed an agreement with a Queensland developer to deliver and manage a 10MW AI-enabled data centre estimated to cost $250 million.

The new deal builds on an earlier binding agreement from August, lifting total capacity under contract to 20MW with an aggregate project cost of over $500 million.

Under the terms of the deal, the company secured binding exclusivity over the location and power capacity for 60 days while targeting long-form binding contracts within 90 days.

X2M CEO Mohan Jesudason said: “X2M is building two strong businesses in smart city digitisation and data centre development. This agreement gives X2M 20MW of data centre capacity across two projects.”

The location currently features a 2.5MW grid connection with local development approvals, while the developer plans to build a 7.5MW behind-the-metre generation system under a power purchase agreement.

The business stated that it intends to provide managed delivery services across design, installation, and commissioning, followed by ongoing management services over the 10-year life of the asset.

Following the announcement, the X2M Connect share price was up 25% at $0.005.

The company stated that its broader development pipeline now stands above 200MW as it targets regional sites in Queensland and the Northern Territory to address grid power constraints.