October 22, 2025
Arizona-based sustainable cooling technology firm XNRGY Climate Systems has secured a significant growth equity investment from a consortium of prominent climate-focused investors, including a fund managed by BlackRock and Temasek. The capital is earmarked to scale the deployment of its energy-efficient thermal management solutions for data centers and other critical infrastructure.
The investment round was led by Decarbonization Partners, a partnership between BlackRock and Temasek dedicated to decarbonization solutions. They were joined by climate solutions investor Climate Investment (CI) and sustainable transition-focused investor Activate Capital.
Founded in 2017, XNRGY specializes in advanced liquid and air-cooling systems designed for high-demand environments. Its client base spans hyperscale and modular data centers, healthcare facilities, pharmaceutical labs, semiconductor clean rooms, and electric vehicle battery manufacturing plants. The company’s core focus is on delivering technologies that enhance energy efficiency, conserve water, and significantly reduce carbon footprints.
This financing arrives as data center operators globally grapple with the substantial environmental impact of their rapidly expanding operations. Cooling is a primary contributor, accounting for a major portion of a data center's total energy and water consumption.
"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 Anup Jacob, Managing Partner at Activate Capital. "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 the company, XNRGY's technologies are engineered to meet the rigorous demands of modern hyperscale data infrastructure, offering benefits such as modular scalability, high reliability, and superior energy performance even in high-ambient-temperature environments. The new funding follows XNRGY's recent announcement of Mesa 2, a new 330,000-square-foot manufacturing facility dedicated to producing its next-generation air-cooled chillers.
Dr. Meghan Sharp, Global Head and Chief Investment Officer of Decarbonization Partners, commented on the investment, stating, "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 our focus on next-generation energy investments that accelerate the digital transformation."
XNRGY has confirmed that the newly acquired capital will be used to fuel its expansion, grow its U.S. manufacturing footprint, and accelerate the rollout of its next-generation cooling solutions to address soaring demand from the data center and mission-critical infrastructure sectors.
"We are delighted to partner with Decarbonization Partners, Climate Investment, and Activate Capital as we enter this next phase of rapid expansion," said Wais Jalali, Founder, Chairman, and CEO of XNRGY. "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."
SOURCE esgtoday
