XNRGY’s new 275,000-square-foot manufacturing facility in Mesa, Arizona, the first phase of a planned 1,000,000-square-foot innovation campus. (Photo courtesy CNW Group/XNRGY Climate Systems)
SAN FRANCISCO—Through its recent investment in XNRGY Climate Systems, a North American manufacturer of sustainable air handling and liquid cooling technologies, Activate Capital intends to support the continued growth of XNRGY and its domestic manufacturing presence.
Activate Capital’s investment is expected to accelerate the delivery of next-generation cooling systems for data centers and other mission-critical infrastructure, according to a joint announcement by the companies.
The announcement follows the opening of XNRGY’s new 275,000-square-foot manufacturing facility in Mesa, Arizona, the first phase of a planned 2,000,000-square-foot innovation campus. With production underway as of May 1, 2025, the facility is said to significantly boost XNRGY’s U.S. capacity to serve rising demand for efficient thermal management systems, particularly across hyperscale, modular, and edge data centers.
Engineered to perform in high ambient temperature environments, XNRGY Climate Systems’ liquid cooling platforms are reported to offer advanced energy efficiency, reliability, and modular scalability. The company offers comprehensive Liquid Side, Air Side, and full thermal management systems with proprietary controls integration. The systems are built by a team of seasoned HVAC engineers and designed to meet the increasingly rigorous operational standards of today’s data infrastructure, the company said in the release.
“We are thrilled to partner with Activate Capital as we enter this next phase of growth,” said XNRGY Founder and CEO Wais Jalali, in the release. “Their expertise in scaling sustainable technologies aligns with our vision to deliver ultra-efficient cooling systems that meet the performance, environmental, and reliability demands of our customers.”
XNRGY designs and manufactures sustainable thermal management systems for mission-critical environments, including data centers, healthcare, clean rooms, and advanced manufacturing.
“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,” said Activate Capital Managing Partner Anup Jacob, in the release. “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.”
At full capacity, the Mesa operation is expected to employ more than 1,000 skilled workers and serve as a cornerstone of Arizona’s clean technology and advanced manufacturing ecosystem.
“This investment underscores Activate Capital’s commitment to backing transformative companies that are reshaping global systems—powering the AI revolution and digital economy through next-generation, high-efficiency critical infrastructure,” the release stated.