XNRGY, one of the largest custom air handling manufacturers in North America, announced the construction of a new cutting-edge manufacturing facility in the Greater Phoenix area, which will be designated as their headquarters.

XNRGY is growing exponentially due to high demand for their premier climate technologies. XNRGY’s state-of-the-art 1 million-square-foot facility represents an estimated $300 million investment, creating more than 900 jobs for residents over time. With the Arizona facility, XNRGY’s total manufacturing capacity will increase to 1,250,000-square-feet including Montreal’s expansion to a 250,000-square-foot facility.

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“We are grateful XNRGY has chosen Arizona as the site of its U.S. headquarters,” said Governor Doug Ducey. “XNRGY’s investment strengthens Arizona’s supply chain and shows once again there is no better state for advanced manufacturing. XNRGY’s facility will create hundreds of high-wage jobs for Arizonans, adding to our state’s skilled workforce.”

“Sustainability and environmental impact are more important than ever, as we race against the clock to save our planet,” said Wais Jalali, Chairman and CEO of XNRGY Climate Systems. “This is an important mission for each one of us. I have set a personal challenge for XNRGY to meet the requirements of the Paris Climate Accord by 2030, 20 years ahead of schedule. Through innovative design and manufacturing, we will provide impactful systems and achieve this goal of reducing building energy consumption.”

The new Arizona facility will increase XNRGY’s manufacturing footprint by a factor of eight. This new best-in-class facility will focus on research and development, spearheading innovation to facilitate the rapid growth and demand for XNRGY’s mission-critical climate systems in sectors such as life sciences, healthcare, data centers, semiconductor cleanrooms and battery manufacturing. Applying vertical integration, full automation, and eliminating supply chain delays will expedite product delivery and significantly reduce product lead times compared to the industry average.

“These are very exciting times! With our two state-of-the-art facilities working in tandem to manufacture premier climate systems, XNRGY can offer exceptional service to our clients from the East to the West coast. Top-notch engineers have already been engaged to meet the rising demands for our advanced technologies,” said Sham S. Ahmed, President and General Manager, Montreal-XNRGY Climate Systems.

“XNRGY’s new manufacturing facility highlights the state’s attractiveness as a destination for manufacturing excellence,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “XNRGY is bringing their state-of-the-art operations to Arizona, highlighting the state’s vibrant industrial manufacturing sector. We are grateful to XNRGY for their commitment to Arizona and look forward to supporting them as they establish their first facility in the U.S.”

XNRGY is developing solutions that will not use millions of gallons of water per day. These systems are integrating very high-efficiency refrigerant systems coupled with proprietary machines moving the air. Immersion cooling is the next step. XNRGY wants to be part of the solution to cool hyper-scale data centers without millions of gallons of water a day.

The renowned global architectural firm Gensler has been retained to design this state-of-the-art manufacturing facility. Construction will begin in June 2022, with the initial phase scheduled to be complete in Q1 of 2023. Phase one consists of 250,000 square feet of class 100,000 cleanroom production facilities. All construction phases are projected to be complete by June 2025.

“XNRGY is a transformational company that is changing the trajectory of an entire market, integrating sustainability to create immeasurable impact in Arizona and the world,” said Martha Abbott, managing principal, Gensler. “We are honored to be partnered with a company whose vision and values are aligned to ours around the future of the built environment.”

Maricopa County is the fastest-growing region in the United States. Ranked as one of the top ten states in the U.S. for its business environment, Arizona is experiencing the second-fastest rate of manufacturing job growth and the fastest population expansion in the country. Additionally, Arizona possesses the fifth-largest data center inventory in the nation.