Sustainable liquid and air-cooling technology provider XNRGY Climate Systems announced that it has secured new growth equity financing, with proceeds aimed at scaling the deployment of its solutions to meet growing demand for applications including data centers and critical infrastructure.
Investors backing the round included BlackRock and Temasek’s decarbonization-focused fund, Decarbonization Partners, as well as climate solutions-focused investor Climate Investment (CI) and sustainable transition-focused investor Activate Capital.
Founded in 2017, Arizona-based XNRGY provides thermal management solutions for applications including hyperscale and modular data centers, healthcare facilities, pharmaceutical labs, semiconductor clean rooms, electric vehicle battery manufacturing, and life sciences facilities, and with a focus on energy efficiency, water conservation, and reducing carbon footprints.
The financing comes as data center operators are looking to tackle the sustainability and energy aspects of their rapidly expanding footprints, with cooling accounting for a significant portion of data centers’ energy and water usage.
Anup Jacob, Managing Partner at Activate Capital said:
“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.”
According to XNRGY, the company’s technologies are designed to meet the evolving demands of hyperscale data infrastructure, citing benefits including modular scalability, reliability, and energy efficiency in high-ambient-temperature environments. The new financing follows XNRGY’s recently announced construction of Mesa 2, a new 330,000 square foot facility dedicated to producing its next-generation air-cooled chiller.
Dr. Meghan Sharp, Global Head and Chief Investment Officer of Decarbonization Partners said:
“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.”
XNRGY said that the new capital will be used to support its growth, expand its U.S. manufacturing footprint, and accelerate the deployment of next-generation cooling solutions to meet the demand for data centers and other mission-critical infrastructure.
Wais Jalali, Founder, Chairman and CEO of XNRGY, said:
“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.”
