Signs Binding Agreement to Deliver AI-Enabled Data Centre

Key points

• X2M signs a binding agreement for an AI-enabled data centre.
• Estimated project cost over $250 million.
• Expected recurring revenue from platform management.
• First conversion from Australian prospect pipeline.
• Targets GPU-accelerated compute for efficiency.

Full summary

X2M Connect Limited (ASX:X2M) has signed a binding agreement to deliver an AI-enabled data centre with an estimated project cost exceeding $250 million. This agreement marks the first conversion from X2M's Australian data centre pipeline, which stands at approximately 150MW. The facility will target GPU-accelerated compute, aiming to address the efficiency challenge in data centre build-outs. X2M will manage the full life of the facility, including design, delivery, and ongoing management, with expected recurring platform revenue. The agreement also establishes a panel of pre-approved global technology providers for the facility's delivery.

Guidance

Estimated project cost over $250 million; expected recurring revenue

Outlook

X2M expects to recognize the full project cost as revenue and earn a margin on the project.