XNRGY Climate Systems, a North American leader in sustainable liquid and air-cooling technologies, announced that it has secured growth equity financing from Decarbonization Partners (a joint venture between BlackRock and Temasek), Climate Investment (CI), and Activate Capital. The investment will accelerate XNRGY’s rapid expansion, expand its U.S. manufacturing footprint, and support the rollout of next-generation cooling solutions to meet the growing global demand from data centers and mission-critical infrastructure.
The new capital builds on earlier investments from Idealist Capital and MKB, which remain shareholders in the company, and represents Activate Capital’s second significant investment in XNRGY this year.
XNRGY specializes in high-efficiency liquid and air-cooling systems with integrated AI-driven controls, engineered to support the power and thermal demands of hyperscale data infrastructure. The company’s modular systems are designed for scalability, energy efficiency, and reliability in high-temperature environments. Its solutions have become a critical enabler of the digital economy, where data center cooling and energy efficiency are key to managing the environmental impact of AI and cloud computing infrastructure.
With the support of its new investors, XNRGY will continue to advance sustainable cooling innovation and expand its operational footprint. On September 17, 2025, the company announced Mesa 2, a new 330,000-square-foot facility in Arizona dedicated to producing next-generation air-cooled chillers. This new facility will integrate XNRGY’s proprietary AI and controls with Copeland technology, enabling unprecedented efficiency and performance. Mesa 2 marks the company’s fourth major expansion in three years, bringing its combined operational footprint across Mesa, Arizona, and Montreal, Quebec to nearly 1 million square feet.
XNRGY is implementing advanced manufacturing systems modeled after the automotive industry, featuring digital production tracking and rigorous quality assurance. Its thermal management solutions span Liquid Side, Air Side, and fully integrated systems, designed and built by a team of experienced engineers to meet the evolving needs of hyperscale and industrial clients.
KEY QUOTES
“We are delighted to partner with Decarbonization Partners, Climate Investment and Activate Capital as we enter this next phase of rapid expansion. Their experience, industry relationships and company vision align perfectly with our mission to lead through cutting edge innovation and our dedication to scaling and delivering efficient and reliable data center cooling solutions.”
Wais Jalali, Founder, Chairman and Chief Executive Officer, XNRGY Climate Systems
“We’re excited to support XNRGY’s growth as they scale up manufacturing to meet customer demand for energy efficient cooling solutions, which are critical to the data center infrastructure buildout. XNRGY’s unique solution directly aligns with Decarbonization Partners’ focus on next generation energy investments that accelerate the digital transformation.”
Dr. Meghan Sharp, Global Head and Chief Investment Officer, Decarbonization Partners
“XNRGY is building a key thermal backbone of the AI era. As data infrastructure scales exponentially, the need for energy-efficient, high-performance cooling becomes mission-critical. Our investment reflects CI’s strategy to back companies that we believe are not only commercially scalable but also climate-aligned. XNRGY’s innovation in liquid and air-cooling systems has the potential to significantly reduce emissions across digital infrastructure, supporting our goal of accelerating decarbonization at scale and delivering measurable climate impact.”
Patrick Yip, Managing Director and Head of Growth Equity, Climate Investment
“Data centers are among the most energy-intensive assets in the digital economy, and chillers are the central, long-lead infrastructure component that defines their thermal performance. XNRGY’s technical depth and domestic manufacturing capabilities position it to deliver the efficiency breakthroughs needed to support the AI-driven transformation of global infrastructure.”
Anup Jacob, Managing Partner, Activate Capital
