Activate Capital has made a strategic investment in XNRGY Climate Systems, a Montreal-area manufacturer of sustainable air-handling and liquid-cooling technologies.

The amount of the investment and other financial terms were not disclosed.

The funding will help XNRGY scale its operations, expand manufacturing, and speed up the delivery of energy-efficient cooling solutions for data centres and other critical infrastructure.

The investment follows the recent opening of XNRGY’s 275,000-square-foot manufacturing facility in Mesa, Ariz., the first phase of a planned one million-square-foot innovation campus. Production at the site began in May, boosting XNRGY’s capacity to meet growing demand across hyperscale, modular, and edge data centres.

“We are thrilled to partner with Activate Capital as we enter this next phase of growth,” said Wais Jalali, Founder and CEO of XNRGY. “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’s systems are built to perform in high-temperature environments and are designed by experienced HVAC engineers. The company’s platforms offer modular scalability and integrate proprietary controls to support advanced energy efficiency and operational resilience.

“Data centres 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 San Francisco-based 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.”

Once fully operational, the Mesa, Ariz., facility is expected to employ more than 1,000 skilled workers and contribute to Arizona’s clean technology and advanced manufacturing ecosystem.

XNRGY also owns and operates a facility in Montreal.

Rendering: CNW Group/XNRGY Climate Systems