XNRGY Climate Systems has received growth equity equity financing from BlackRock- and Temasek-backed Decarbonization Partners, Climate Investment and Activate Capital to help expand its U.S. footprint.

Montreal-based XNRGY manufactures sustainable air-handling and liquid-cooling technologies for data centres. The products are designed to reduce power consumption across digital infrastructure.

The financing is also designed to accelerate the deployment of next-generation cooling systems to meet demand for data centres and other critical infrastructure.

The amount of the financing and other financial terms were not disclosed. XNRGY previously announced that Activate provided it with a significant investment.

“Data centre 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. “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.”

The financing comes after XNRGY announced in September the construction of Mesa 2, a brand-new, 330,000-square-foot facility in Mesa, Ariz., dedicated to producing the company’s next-generation air-cooled chiller with XNRGY’s property controls and AI with Copeland technology.

The Mesa 2 expansion marks XNRGY’s fourth significant growth initiative in just three years and bridge the company’s total footprint in Montreal and Arizona to nearly one million sf.

Patrick Yip, head of growth equity at CI, said XNRGY is building a key “thermal backbone” of the AI era.

“Our investment reflects CI’s strategy to back companies that we believe are not only commercially scalable but also climate-aligned,” he said. “XNRGY’s innovation in liquid and air-cooling systems has the potential to significantly reduce emissions across digital infrastructure, supporting our goal of accelerating decarbonization at scale and delivering measurable climate impact.”

As data infrastructure scales up, the need for energy-efficient, high-performance cooling becomes even more critical, he added.

“XNRGY’s unique solution directly aligns with Decarbonization Partners’ focus on next generation energy investments that accelerate the digital transformation,” said Megan Sharp, global head and chief investment officer at Decarbonization Partners.

The latest financing and Activate’s previously announced investment follow the opening of XNRGY’s 275,000-sf manufacturing facility in Mesa, 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. The locations will create approximately 500 jobs once their fully operational, the company said.

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.

Decarbonization Partners, a joint-venture between Temasek and BlackRock, focuses on late-stage venture capital and early-growth private-equity investment in next-generation companies designed to accelerate the net-zero economy.

CI is an independently managed investor specializing in industrial decarbonization.

Activate is a growth-stage venture-capital firm investing in the global economic transition, aiming to accelerate decarbonization and strengthen shared systems and infrastructure.

Pictured: XNRGY’s Mesa 2 location in Mesa, Ariz.

Rendering: Courtesy of XNRGY