X2M Connect (ASX:X2M) has secured firm commitments to raise approximately $2 million through a placement priced at $0.004 per share, backed by professional investors, as the company accelerates its expansion into the rapidly growing data centre sector.

The capital will fund X2M's push into data centre sensor integration, platform enhancements, battery energy management, and smart community infrastructure. The company stated that the raising strengthens its balance sheet as it positions itself as a provider of energy management systems and sensor monitoring technology for data centres and their surrounding precincts.

X2M aims to help operators reduce energy costs by between 10% and 20%. The company is targeting a market in which Australian investment in data centre and connectivity infrastructure is projected to reach as much as $135 billion by CY35. The expansion comes as data centre operators globally face mounting pressure to manage surging power consumption driven by AI workloads and cloud computing demand, creating a growing market for real-time energy optimisation tools.

The company's AI-enabled platform is designed to connect devices across multiple manufacturers and communication networks, enabling operators to manage power generation, battery storage, cooling systems, environmental sensors, metering, and connectivity through a single real-time platform. X2M said it intends to be involved from the design phase of data centre developments through construction and into long-term operations, generating ongoing platform and SaaS revenue.

X2M entered FY27 with approximately $3 million in contracted revenue, including a recently announced $1.1 million contract with the City of Seoul to supply a further 50,000 HelpMe devices.

Following the placement, X2M intends to launch a fully underwritten Securities Purchase Plan to raise an additional $1 million on the same or similar terms, allowing existing shareholders to participate.

X2M was trading at $0.40 per share at lunchtime.