• Decarbonization Partners, Climate Investment, and Activate Capital inject growth equity into XNRGY to accelerate sustainable cooling manufacturing expansion.
• Funding will expand XNRGY’s U.S. footprint and boost deployment of next-generation liquid and air-cooling systems for hyperscale data centers.
• Investment aligns with global decarbonization priorities as AI-driven data infrastructure increases energy demand and emissions risk.
Driving Sustainable Cooling in the Digital Age
Montreal-based XNRGY Climate Systems has secured growth equity financing from Decarbonization Partners—a joint venture between BlackRock and Temasek—alongside Climate Investment (CI) and Activate Capital. The infusion is aimed at scaling the company’s sustainable cooling systems for high-intensity digital infrastructure such as data centers, a sector facing mounting pressure to reduce its energy footprint amid surging demand from artificial intelligence and cloud computing.
The transaction builds on earlier investments from Idealist Capital and MKB in 2023, with both remaining shareholders. For Activate Capital, this marks a second major investment in XNRGY this year, underscoring continued confidence in the company’s market positioning and technology.
Scaling Manufacturing and Innovation
Founded by Wais Jalali, XNRGY designs high-efficiency air and liquid cooling systems integrated with proprietary AI-driven controls. Its solutions are engineered for scalability, reliability, and peak performance in high-temperature environments—capabilities that have become essential as data centers proliferate in warmer regions and energy costs rise.
The new financing will accelerate the company’s U.S. expansion, particularly in Mesa, Arizona, where XNRGY is constructing Mesa 2, a 330,000-square-foot facility dedicated to producing its next-generation air-cooled chillers. The system integrates XNRGY’s control software with Copeland technology to deliver enhanced energy efficiency. Once operational, Mesa 2 will expand the company’s total manufacturing footprint in North America to nearly one million square feet across Arizona and Quebec.
Jalali said the partnerships with Decarbonization Partners, Climate Investment, and Activate Capital align with XNRGY’s ambition to lead through innovation and precision engineering. “Their experience, industry relationships and company vision align perfectly with our mission to scale efficient, reliable data center cooling solutions,” he said.
Investors Eye the Decarbonization Opportunity
For investors, the deal represents more than an industrial manufacturing expansion—it is a bet on the energy infrastructure underpinning the next wave of digital transformation.
“XNRGY’s solution directly aligns with our focus on next-generation energy investments that enable decarbonization,” said Dr. Meghan Sharp, Global Head and CIO of Decarbonization Partners. “As data center infrastructure builds out globally, energy-efficient cooling is critical to mitigating its environmental footprint.”
Patrick Yip, Head of Growth Equity at Climate Investment, framed the investment as central to supporting scalable, climate-aligned technologies. “XNRGY is building a key thermal backbone of the AI era,” he said. “Efficient cooling is mission-critical, and the company’s innovations have the potential to materially reduce emissions across digital infrastructure.”
Activate Capital’s Managing Partner, Anup Jacob, added that XNRGY’s manufacturing depth gives it a competitive edge: “Data centers are among the most energy-intensive assets in the digital economy, and chillers define their thermal performance. XNRGY’s capabilities position it to deliver the breakthroughs needed for AI-driven infrastructure.”
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Industrial Precision Meets Climate Imperative
XNRGY applies production methods inspired by automotive manufacturing, using digital tracking and rigorous quality control to optimize performance and consistency. Its systems span both liquid and air-side cooling, integrating full thermal management with proprietary control platforms. The company’s engineering teams focus on modularity—allowing facilities to scale capacity while maintaining high energy efficiency.
As hyperscale data centers multiply across North America, their electricity demand—already exceeding that of some mid-sized nations—has drawn scrutiny from regulators and investors. Cooling can account for 30–40% of a data center’s total energy use, making high-efficiency systems a critical lever in reducing emissions and operating costs.
XNRGY’s backers view its technology as a pathway to lowering both carbon intensity and power demand at the infrastructure level. By delivering localized, scalable production, the firm also mitigates supply chain dependencies—an increasingly important factor as data and energy infrastructure are recognized as strategic assets.
The Broader ESG Context
For policymakers and investors, the deal reflects a convergence of industrial innovation and climate finance priorities. It demonstrates how capital is shifting toward hardware solutions that enable emissions reductions within high-growth digital sectors.
The investment by Decarbonization Partners and CI—both backed by global institutional capital—positions XNRGY within a new wave of climate-aligned infrastructure players that link manufacturing capability with ESG performance outcomes. As AI adoption accelerates, the ability to cool data efficiently will define not only operational resilience but also the sustainability credibility of digital economies worldwide.
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