Venture capital firm Activate Capital has invested in cooling firm Xnrgy Climate Systems.

The companies this week announced Activate has made a strategic investment in Xnrgy, a North American manufacturer of air handling and liquid cooling technologies.

The undisclosed investment will support Xnrgy's growth, expand its domestic manufacturing presence, and accelerate the delivery of new cooling solutions for data centers and other mission-critical 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."

Founded in 2017, Xnrgy designs and manufactures HVAC (heating, ventilation, and air conditioning) systems. The company offers CRAH (computer room air handle) and CRAC (computer room air conditioning) systems offering cooling capacities from 60kW to more than 1MW, as well as chillers, fans, and dehumidifiers.

Xnrgy opened the first phase of a new 275,000-square-foot (25,548 sqm) manufacturing facility in Mesa, Arizona, in May. In total, the facility is planned to be a one-million sq ft (92,903 sqm) innovation campus.

Activate’s other investments include data center firm Crusoe, satellite firm MuonSpace, and several energy-related startups.