Australian IoT company X2M Connect has established a dedicated data center subsidiary as it moves into the data center sphere.

The wholly owned subsidiary, named X2MDC, has been formed to contract and deliver high-density GPU-accelerated data centers. X2M’s planned pipeline of data center projects could reach up to 150MW.

X2MDC operations will include commissioning, engineering, design, delivery, installation, and operation of data centers. It will also provide Software as a Service (SaaS) throughout the operating life of the facilities.

The subsidiary will provide two services: Platform Services, which consist of AI integration and management for data centers by bringing cooling, power, water, and environmental systems, and Managed Delivery, the end-to-end service from contracting to delivering a complete data center, including design, supplier selection, and long-term operations.

The company says it expects contracts to vary depending on customer requirements.

X2M CEO Mohan Jesudason said: “X2MDC gives us a dedicated vehicle to execute on our pipeline of possible data center opportunities. X2M has spent more than a decade connecting and optimizing devices across water, gas and energy, and that is exactly the challenge for every AI facility being planned or built today.”

He added: “We are excited at the prospect of delivering services in association with some of the top providers in the world and offering a comprehensive platform and delivery service to land and data center owners across the country."

The formation of X2M’s dedicated data center subsidiary business follows a McKinsey report published in April 2026, which indicates an increase in Australian data center demand from 1.5GW in 2025 to as much as 5GW by 2030, which the management consulting firm expects will require up to AU$190bn (~US$135bn) of digital infrastructure investment.

X2M signs a deal for an AI-enabled data center project

X2M signed a binding agreement to deliver an AI-enabled data center this week, just two days after forming its dedicated data center subsidiary.

The company has been contracted to provide a high-density GPU data center with an estimated project cost of more than AU$250m (~US$180m), with full delivery over a three-to-five-year period.

The customer is yet to be named and the location yet to be confirmed, and the company has said the agreement does not currently include a value for the data center power capacity to be deployed.

The customer contract is the first of X2M’s dedicated data center subsidiary business and will operate under the company’s Managed Delivery business model. It will consequently include the provision of services for engineering, design, supply, installation, commissioning, and operation of the data center.

Within the agreement, X2M is pre-approved to contract partners across telecommunications, energy systems, compute, AI chip, networking, and research. The agreement is conditional only on approval being given for the development of the data center.

Jesudason shared: “This agreement is transformational for X2M. We play a key role in the data center delivery, and that in turn creates a materially large business opportunity for us. 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 center owners across the country.”

The contracted data center is part of X2M’s pipeline of potential Australian data centers, the majority of which will be located in Queensland. In some locations, facility development has already been approved. The data centers will range in size from 1MW upwards, with a target total of 150MW across the company’s pipeline of potential data center sites.

Australia-based X2M was founded in 2019 and is headquartered in Mount Waverley, Victoria, Australia. The company describes itself as a smart city technology company that delivers solutions to enhance productivity, reduce operational costs, and improve public safety for utility and government customers. The firm claims to have connected more than 500,000 devices supporting more than 90 customers across five geographic regions, and continues to expand its footprint.

In June this year, X2M announced a partnership with real estate firm Resi Ventures to develop data centers across regional Australia. The collaboration shared that it had completed settlement for land approximately 10 kilometers (6.2 miles) from Ballarat’s central business district in Victoria in July. Allegedly, the data center will be a high-density AI-enabled facility, with a potential capacity ranging from 10-100MW.