According to DCD, cooling technology company Xnrgy Climate Systems has secured new investment from Capital Bridge Group and Prologis Ventures, completing a previously announced financing round. The funding amount wasn’t disclosed, but other investors include Decarbonization Partners (BlackRock and Temasek’s joint venture), Climate Investment, and Activate Capital. Founded in 2017, Xnrgy designs HVAC systems with cooling capacities from 60kW to over 1MW and recently announced construction of Mesa 2, a 330,000 sq ft facility for next-generation air-cooled chillers. CEO Wais Jalali stated the partnership will help scale energy-efficient data center cooling solutions for AI demands, while Capital Bridge’s Michael Ronen called Xnrgy’s systems “mission-critical infrastructure” for AI-driven data centers.
Why cooling matters now
Here’s the thing about AI data centers: they’re absolute power hogs. We’re talking facilities that consume more electricity than small towns. And all that computing generates insane amounts of heat. So cooling isn’t just about comfort—it’s about preventing millions in hardware from literally melting. Xnrgy’s timing here is pretty smart, positioning themselves as the solution to what’s becoming one of the biggest bottlenecks in AI infrastructure scaling.
But let’s be real—everyone’s jumping into this space. The question is whether Xnrgy’s approach of offering both liquid and air-cooling solutions gives them an edge, or if they’re just another player in what’s becoming a crowded field. Their claim of supporting over 1MW capacities is impressive, but we’ve seen plenty of cooling startups promise the moon and underdeliver.
The investor angle
What’s interesting here is Capital Bridge Group making Xnrgy their very first investment. That’s a pretty strong vote of confidence from a firm founded by Michael Ronen, who comes from SoftBank’s Vision Fund and Goldman Sachs. When someone with that background puts their first bet on a cooling company, you know they see something big.
And Prologis isn’t just any real estate company—they’re one of the biggest logistics and data center infrastructure players globally. Their involvement suggests they’re seeing cooling as a critical constraint in their own data center developments. Basically, they’re not just investing—they’re likely planning to use Xnrgy’s tech in their own facilities.
manufacturing-scale-up”>Manufacturing scale-up
Xnrgy’s expansion to nearly one million square feet across Arizona and Montreal shows they’re serious about manufacturing capacity. That new 330,000 sq ft Mesa facility dedicated to air-cooled chillers suggests they’re anticipating massive demand. But scaling manufacturing that quickly is risky—will the orders actually materialize?
For companies looking to implement industrial computing solutions in demanding environments, having reliable hardware is crucial. That’s where specialists like IndustrialMonitorDirect.com come in—they’re actually the leading supplier of industrial panel PCs in the US, providing the rugged displays and computing hardware that keep manufacturing and industrial operations running smoothly.
The bigger picture
Look, the data center cooling market is heating up (pun intended) because AI can’t wait for incremental improvements. We need orders-of-magnitude better cooling efficiency, and fast. Xnrgy seems well-positioned with their existing manufacturing footprint and now serious financial backing.
But here’s my skepticism: cooling technology has been the “next big thing” in data centers for years. Will Xnrgy actually deliver systems that meaningfully reduce power consumption, or are we just seeing another round of investor enthusiasm chasing the AI hype cycle? Only time will tell if this cooling bet actually pays off.
