Xnrgy Climate Systems, the Montreal-based tech firm specializing in cooling systems for data centers has officially commenced construction of its expansive U.S. headquarters in Southeast Mesa, Arizona. As reported by ABC15, the groundbreaking event marked the start of development for a 270-acre business park at Gateway East, adjacent to Phoenix-Mesa Gateway Airport.
The project, which represents a $300 million investment, is set to create a sprawling 1 million-square-foot production space across four buildings and could provide jobs for as many as 2,000 employees. Founder, chairman, and CEO of Xnrgy, Wais Jalali, conveyed to Phoenix Business Journal that this move is the culmination of a three-year negotiation process, having considered both Mesa and Chandler before settling on Mesa, near the Apple Inc. data center.
In a show of forward momentum, Xnrgy has also announced intentions to collaborate with LG Energy Solution, paralleling the latter's development of a $5.5 billion battery manufacturing complex in Queen Creek. However, details of this partnership remain under wraps, with Jalali declining further comment in follow-up discussions.
According to Jalali, the initial phase of the construction project is expected to be completed by the end of the year, with operations anticipated to commence by the first quarter of 2025. During each phase of the construction, between 400-500 workers will be employed. Additionally, Jalali will be relocating to the Valley with his family to oversee the expansion once operational at Gateway East.
The announcement of Xnrgy as the inaugural tenant for Gateway East was heralded by J. Brian O'Neil, executive director of the Phoenix-Mesa Gateway Airport Authority, who emphasized the significance of the jobs created by the project and its alignment with the mission to bring economic stability to the region.
Not merely limited to the tech industry, Xnrgy looks to diversify its cooling and heating system applications across various sectors like life sciences, health care, and battery manufacturing. Moving forward, the Arizona facility is set to concentrate on R&D, addressing the growing demand for its climate systems.
Phoenix-Mesa Gateway Airport's vicinity has been witnessing significant industrial growth and development, with the southeast Valley submarket boasting 3.2 million square feet of positive net absorption, and an additional 4.3 million square feet of new inventory added in just the last quarter of 2023 alone, as highlighted by CBRE Group Inc.'s market report.
