Decarbonization Partners Backs XNRGY to Scale Sustainable Data Center Cooling

Arizona-based sustainable cooling solutions provider XNRGY Climate Systems secured growth equity financing from BlackRock and Temasek's Decarbonization Partners fund, alongside climate investor Climate Investment and Activate Capital, to scale its energy-efficient cooling technologies for data centers and critical infrastructure. The investment comes as data center operators face mounting pressure to address the energy and water intensity of rapidly expanding facilities.

Founded in 2017, XNRGY provides thermal management solutions for hyperscale and modular data centers, healthcare facilities, pharmaceutical laboratories, semiconductor clean rooms, and electric vehicle battery manufacturing. The company's technologies are designed for high-ambient-temperature environments and emphasize modular scalability, energy efficiency, and water conservation. Cooling accounts for a significant portion of data center energy use, with large-scale facilities consuming substantial volumes of electricity and water for thermal management purposes.

The investment follows XNRGY's announcement of Mesa 2, a new 330,000 square foot facility dedicated to producing its next-generation air-cooled chiller. The new capital will support expansion of US manufacturing capacity and acceleration of next-generation cooling solution deployment. Decarbonization Partners described data center chillers as the central long-lead infrastructure component defining the thermal performance of AI-driven hyperscale facilities, and said XNRGY's technical depth and domestic manufacturing position it to deliver efficiency improvements at scale.

The growth of AI-driven data center demand has dramatically increased the strategic importance of energy-efficient cooling technology, with hyperscale operators committing to sustainability targets while simultaneously expanding energy-intensive infrastructure at unprecedented speed. For India, where data center capacity is expanding rapidly in response to growing cloud computing and digital services demand, energy-efficient cooling technologies are directly relevant to the carbon footprint management of the country's emerging data center sector. Sustainable cooling solutions are becoming a procurement priority for data center developers seeking to meet investor and regulatory sustainability standards.

Key figure — 330,000 sq ft Mesa 2 facility for next-generation chiller production