X2M Connect signs second Queensland AI data centre deal, lifting capacity to 20MW

what happened

Australian company X2M Connect has entered an agreement to develop a 10MW AI-enabled data centre in regional Queensland, according to smallcaps.com.au. Together with its earlier project, the capacity under agreement across the two sites now totals 20MW, and estimated project costs exceed $500m.

The Queensland facility carries an estimated cost of $250m. X2M receives binding exclusivity over the site and its power capacity for 60 days, while long-form contracts are targeted within 90 days. The location already holds local government development approval and an existing 2.5MW grid connection, which will support an initial stage. The remaining 7.5MW is to come from on-site renewable generation under a power purchase agreement, with availability expected by the end of 2028.

Chief executive Mohan Jesudason said: "This agreement will bring both our Managed Delivery and Platform Services products to this Queensland site. Our focus is now on delivery and on converting the balance of our pipeline, including the partnership agreements already announced." The company's prospective pipeline remains above 200MW.

why it matters

For markets this is mainly a local story about a small company. Expected earnings from managing the facility and any share of token-related revenue are not yet contracted and depend on final terms. The key constraint is access to electricity, so timing hinges on grid connection and the planned generation.

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