Cooling firm Xnrgy Climate Systems has secured new investment from BlackRock.

Xnrgy, which provides liquid and air-cooling technologies as well as control systems, last week announced growth equity financing from Decarbonization Partners (a joint venture between BlackRock and Temasek), Climate Investment (CI), and Activate Capital. The size of the investment wasn't shared.

The company said the investment will fuel its growth, expand its US manufacturing footprint, and accelerate the deployment of cooling solutions for data centers and other mission-critical infrastructure.

"We are delighted to partner with Decarbonization Partners, Climate Investment, and Activate Capital as we enter this next phase of rapid expansion," said Wais Jalali, founder and CEO of Xnrgy. "Their experience, industry relationships, and company vision align perfectly with our mission to lead through cutting-edge innovation and our dedication to scaling and delivering efficient and reliable data center cooling solutions."

Activate Capital previously invested in Xnrgy earlier this year. Idealist Capital and MKB invested in the firm in 2023.

"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."

Earlier this year, Xnrgy announced the construction of Mesa 2, a new 330,000 sq ft (30,658 sqm) facility dedicated to producing its next-generation air-cooled chiller. The firm’s operational footprint across Mesa, Arizona, and Montreal, Quebec totals nearly one million sq ft (92,903 sqm).

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

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

Decarbonization Partners is a joint venture between Temasek and BlackRock focused on late-stage venture capital and early growth private equity for companies focused on sustainability.

Dr. Meghan Sharp, global head and chief investment officer of Decarbonization Partners, said: "Xnrgy's unique solution directly aligns with Decarbonization Partners' focus on next-generation energy investments that accelerate the digital transformation."

Launched in 2017 by member companies of the Oil & Gas Climate Initiative (OGCI), Climate Investment is an independently managed specialist investor focused on driving industrial decarbonization. OGCI’s members include the likes of Aramco, BP, Shell, Eni, ExxonMobil, and TotalEnergies.

"Xnrgy is building a key thermal backbone of the AI era," added Patrick Yip, MD, head of growth equity at Climate Investment. "Our investment reflects CI's strategy to back companies that we believe are not only commercially scalable but also climate-aligned. 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."