How X2M Connect became the quiet Australian powering Asia’s smart utilities

• Aussie tech quietly wiring Asia’s smart cities
• X2M turns old pipes into thinking networks
• The real AI race is happening underground

Behind the buzz of artificial intelligence lies a revolution few are paying attention to, one that’s transforming the pipes, grids, and meters that keep cities running.

Utilities and governments are under growing pressure to do more with less: cut water losses, reduce emissions, and keep costs down.

The convergence of AI and the Internet of Things promises to do just that, connecting billions of devices so that networks can think and act in real time.

Australia has a unique role to play in this shift.

It has strong governance, engineering talent, and a front-row seat to the high-growth Asian markets that are digitising fastest.

But the country also faces challenges, including skills shortages in AI and a history of under-investing in tech exports.

For the companies that can bridge those gaps, though, the payoff could be huge.

Especially for those building platforms that power infrastructure rather than just apps that sit on top of it.

The player making it work

One of those players is X2M Connect (ASX:X2M), which has been embedding itself deep inside the digital plumbing of utilities across Asia and the Pacific.

Its technology connects the old and the new. Smart sensors, “dumb” meters, and even decades-old analogue devices converge in one unified platform.

It allows cities to monitor, control, and automate critical services like water, gas and electricity from a single dashboard in real time.

That’s no small feat in an industry where systems are often outdated and spread across vendors and generations of technology.

“You can’t just plug in and play. You need robust two-way communication, carrier-grade uptime, and security at scale,” said X2M CEO Mohan Jesudason.

He adds that, beyond the technology, “there are big commercial hurdles.”

Utilities move slowly, procurement cycles drag on, and once a platform is integrated, the switching cost is high.

But that, ironically, is part of the moat.

X2M’s platform is device-agnostic, meaning it can retrofit almost anything into a single control layer.

And it doesn’t stop at collecting data; it enables remote control and automation, where the real value lies.

Over time, every new connection compounds the data and integration advantage, making the platform more powerful and harder to replicate.

From connectivity to intelligence

X2M’s evolution from IoT connectivity to AI is embodied in Hive.AI, its machine-learning module.

“Hive.AI takes us beyond just collecting and visualising data – it allows our customers to act on that data in real time,” explained Jesudason.

Over the next year, the company plans to use AI to detect issues like leaks or pressure drops before they escalate, and to move intelligence to the edge for faster responses.

It also aims to optimise entire systems such as water networks and renewables, instead of focusing on individual devices.

“The real power of our approach is that it’s practical,” Jesudason said.

“We’re not chasing AI for AI’s sake.

“Every step is about creating measurable outcomes for customers, whether it’s saving money, reducing waste, or improving reliability.”

Where it’s already working

X2M’s story is already playing out in the field.

The company operates across South Korea, Japan, Taiwan, and the UAE, linking more than half a million devices across multiple utilities.

In South Korea, its technology powers public-safety devices that connect directly to emergency services.

In Japan and Taiwan, it’s monitoring water and gas networks and in the UAE, it’s entering the renewables conversation.

FY26 is shaping up as the year of scale, the company said.

X2M has reduced debt, won new mandates worth more than $5 million, and is now pushing into AI-enabled applications at the utility and city level.

“We’re seeing opportunities evolve on two fronts,” Jesudason said.

“On the customer side, utilities and governments are under growing pressure to do more with less – reduce losses, integrate renewables, and deliver better services without increasing costs.”

On the technology side, “the combination of IoT and AI is opening up new applications all the time.”

“Things like predictive maintenance, grid optimisation, and large-scale water loss reduction weren’t possible a few years ago, but now they’re becoming practical and scalable.”

Hurdles to overcome

Deploying AI-enabled infrastructure across Asia, however, comes with real-world complexity, and Jesudason is candid about it.

“Operationally, the challenge is making sure millions of different devices stay reliable and secure – if a single link fails, it can ripple through the network,” Jesudason said.

Regulatory environments vary too.

“Data privacy and sovereignty are the biggest considerations. Different countries across Asia have their own rules around where data can be stored and how it’s used.”

But the company’s broad regional footprint helps. It can apply lessons learned in one jurisdiction across others, adapting faster than many competitors.

Other ASX stocks riding the same wave

A small but growing group of ASX-listed players are also carving out their own spaces in IoT and AI.

One of them is EPX (ASX:EPX).

Its EDGE platform collects live data from meters and sensors across commercial buildings, and runs cloud-based analytics to cut energy and water use.

EPX already operates across Australia, Asia, the Middle East and the UK, helping property owners improve efficiency in real time.

Another name is Simble Solutions (ASX:SIS), which develops energy-intelligence and IoT software for managing consumption and emissions across industrial assets.

Simble’s technology is increasingly being adopted in the Asia-Pacific region as utilities and large enterprises seek data-driven ways to hit sustainability targets.

The views, information, or opinions expressed in this article are solely those of the interviewee and do not represent the views of Stockhead. Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

At Stockhead we tell it like it is. While X2M Connect is a Stockhead advertiser, it did not sponsor this article.