Activate Capital Invests in XNRGY to Accelerate Data Center Cooling Innovation

SAN FRANCISCO, July 21, 2025 /PRNewswire/ - Activate Capital and XNRGY Climate Systems "XNRGY", are pleased to announce that Activate has made a strategic investment in XNRGY, a leading North American manufacturer of sustainable air handling and liquid cooling technologies. The investment will support the company's continued growth, expand its domestic manufacturing presence, and accelerate the delivery of next-generation cooling solutions for data centers and other mission-critical infrastructure.

This announcement follows the opening of XNRGY's new 275,000-square-foot manufacturing facility in Mesa, Arizona, the first phase of a planned one million- square-foot innovation campus. With production underway as of May 1, 2025, the facility significantly boosts XNRGY's U.S. capacity to serve rising demand for efficient thermal management solutions — particularly across hyperscale, modular, and edge data centers.

XNRGY's liquid cooling platforms are engineered to perform in high ambient temperature environments, offering advanced energy efficiency, reliability, and modular scalability. XNRGY offers comprehensive Liquid Side, Air Side, and full thermal management solutions with proprietary controls integration. These systems are built by a team of seasoned HVAC engineers and designed to meet the increasingly rigorous operational standards of today's data infrastructure.

"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."

"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."

At full capacity, the Mesa operation is expected to employ over 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.

ABOUT XNRGY CLIMATE SYSTEMS
XNRGY is a North American leader in the design and manufacturing of sustainable Thermal Management systems for mission-critical environments, including data centers, healthcare, clean rooms, and advanced manufacturing. With facilities in Montreal and Mesa, XNRGY delivers ultra-efficient air handling units, liquid cooling systems, and fan platforms optimized for performance, reliability, and climate resiliency. Visit www.xnrgy.com

ABOUT ACTIVATE CAPITAL
Activate Capital is a growth-stage venture capital firm investing in the sustainable, resilient transformation of the global economy. Our portfolio companies address climate and important 21st-century challenges by accelerating decarbonization and strengthening our shared systems and infrastructure. Activate invests in technology companies at their inflection point, led by exceptional entrepreneurs with ambitions to build category-defining platforms of the future. To learn more, please visit activatecap.com.

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SOURCE XNRGY Climate Systems