X2M Connect Lands First High-Density GPU Data Centre Contract Valued at More than $250m

X2M Connect (ASX: X2M) has signed its first binding data centre agreement, securing a role in the design, delivery, and ongoing management of an AI-enabled high-density graphics processing unit (GPU) facility with an estimated project cost exceeding $250 million.

X2M has been engaged initially to provide design services supporting development approval before progressing to full delivery and management, with the agreement conditional on that approval and carrying no other conditions precedent.

The agreement will operate under X2M’s Managed Delivery model, allowing the company to provide design, engineering, supply, installation, commissioning, and operating services according to staged scopes of work agreed with the customer.

The contract marks the first conversion from an Australian data centre prospect pipeline of approximately 150 megawatts, with most opportunities located in Queensland and ranging from 1MW upwards.

Pre-Approved Contractor Panel

The customer has pre-approved a panel of organisations that X2M can contract across areas including compute, AI chips, networking, energy systems, telecommunications and research, while additional providers may be introduced with written customer approval.

The project is expected to be delivered over three to five years, with X2M currently expecting to recognise the full project cost as revenue and earn a margin alongside recurring platform and management revenue over the facility’s operating life.

“We play a key role in the data centre delivery, and that in turn creates a materially large business opportunity for us,” chief executive officer Mohan Jesudason said.

“We are excited at the prospect of delivering services from some of the top providers in the world, and offering a comprehensive service to this customer and land and data centre owners across the country."

150MW Project Pipeline

X2M is working with supplier partners to convert its approximately 150MW pipeline, which includes sites where development approval has already been secured as well as projects still progressing through earlier stages.

The company is targeting facilities designed for GPU-accelerated computing, where high power and cooling requirements create opportunities for its AI integration and management technology to optimise the amount of usable compute delivered from each MW.

Australian data centre demand is forecast to increase from 1.5 gigawatts in 2025 to as much as 5.0GW by 2030, requiring up to $190 billion in digital infrastructure investment, providing the broader market backdrop for X2M’s expansion into the sector.

The new agreement gives X2M exposure to revenue from delivery costs, partner commissions, success-linked remuneration, and ongoing management services.

At the same time, it establishes a first contracted reference point for converting the remainder of its prospective Australian data centre portfolio.