X2M Connect Lands First GPU Data Centre Contract Worth $250m
X2M Connect's first binding data centre contract, worth more than $250 million, marks the first conversion from its 150MW Australian prospect pipeline.
X2M Connect (ASX: X2M) has signed its first binding data centre agreement, covering design, delivery and ongoing management of an AI-enabled high-density GPU facility with an estimated project cost above $250 million.
X2M starts with design services supporting development approval. The agreement is conditional on that approval and carries no other conditions precedent. After approval, the contract moves into full delivery and management, running under X2M's Managed Delivery model with staged scopes covering design, engineering, supply, installation, commissioning and operating services.
The contract is the first conversion from X2M's Australian data centre prospect pipeline of about 150 megawatts. Most prospects sit in Queensland and range from 1MW upwards.
The customer has pre-approved a panel of organisations X2M can contract across compute, AI chips, networking, energy systems, telecommunications and research. Additional providers can be introduced with written customer approval.
Delivery is expected to take three to five years. X2M expects to recognise the full project cost as revenue and earn a margin on that work, with recurring platform and management revenue continuing over the facility's operating life.
X2M is working with supplier partners to convert the rest of its pipeline, which includes sites that have already secured development approval and projects still in earlier stages. The company is targeting GPU-accelerated facilities, where high power and cooling requirements give its AI integration and management technology a role in raising the usable compute delivered from each megawatt.
Australian data centre demand is forecast to rise from 1.5GW in 2025 to as much as 5.0GW by 2030, requiring up to $190 billion in digital infrastructure investment, X2M said.
The new agreement gives X2M exposure to delivery costs, partner commissions, success-linked remuneration and ongoing management services. It also establishes a first contracted reference point for converting the remainder of its prospective Australian data centre portfolio, the company said.
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