Manufacturer plans hiring surge after Mesa expansion

By: Paul Thompson

A major player in the data center sector is expanding its already robust presence in the East Valley.

Xnrgy Climate Systems Inc. has scooped up 330,000 square feet at Centris Industrial at Mesa, a Class A industrial complex that was completed in late 2024. Xnrgy will use the facility to produce its next-generation air-cooled chiller, according to a Sept. 17 announcement.

Including the new facility, located at Pecos Road and 80th Street, the manufacturer of climate systems for data centers and other facilities is expected to eventually have more than 1.3 million square feet of industrial space in Mesa once all its planned facilities are built out.

At full capacity, the company’s Mesa facilities could employ roughly 500 people, according to the announcement. The company, which was founded in Montreal, Canada, has previously described its Mesa presence as its U.S. headquarters.

"This new chapter for Xnrgy is about more than just increasing capacity; it's about reinforcing our position as leaders in innovation and our dedication to providing cutting-edge data center cooling solutions," said Wais Jalali, Xnrgy Founder and CEO, in a statement. "Our accelerated growth underscores the critical demand for our advanced thermal management systems and our commitment to meeting market needs.”

Cushman & Wakefield’s Phil Haenel, Andy Markham, Mike Haenel and Justin Smith represented the landlord, Outrigger Industrial, in the lease negotiations. Shawn Beaird of Urban Luxe Real Estate represented Xnrgy.

Xnrgy's first phase in Mesa opened in April

Xnrgy in April opened the first phase of a $300 million campus in Mesa that is eventually expected to reach 1 million square feet across four buildings and employ up to 2,000 workers. The company said at the time that it intends to ramp up to 300 employees at the facility by the end of this year.

During a groundbreaking celebration for the first phase of Xnrgy’s U.S. headquarters in 2024, Jalali indicated the company had plans to partner with LG Energy Solution at its $5.5 billion battery manufacturing in Queen Creek. That project was about 60% complete as of August, and LGES at the time planned to start production by summer 2026.

A spokesperson for Xnrgy indicated the company’s expansion in Mesa is unrelated to any partnership with LGES. The spokesperson added that the company’s growth in the Valley is “being driven by strong demand for advanced thermal management systems, the region’s booming data center and semiconductor industries, and the company’s ability to deliver customized, energy-efficient solutions at scale.”

The new 330,000-square-foot facility “will incorporate several dedicated assembly lines” along with “state-of-the-art production systems and digital tracking throughout the manufacturing process,” according to the company’s announcement.

It will also feature a $10 million environmental testing chamber for its advanced cooling systems, known as chillers. The company anticipates that it will be able to produce 3,000 advanced air-cooled chillers annually at its new facility once at full capacity.

Xnrgy's Mesa lease was inked as the Phoenix industrial market reached 10.9% vacancy at the end of the second quarter, according to Colliers. That marked a 30-point decrease quarter-over-quarter, with direct vacancy falling for the first time in seven quarters.

The Southeast Market Cluster, where Mesa is located, had a total vacancy rate of 14.1% with roughly 17.7 million square feet of available square footage at the end of the second quarter, Colliers found.

Final Thoughts:

Xnrgy Climate Systems’ expansion marks a major win for Mesa’s industrial market and workforce. With 330,000 square feet secured at Centris Industrial, the company is on track to produce 3,000 air-cooled chillers annually and employ up to 500 people at full buildout. This growth highlights Mesa’s position as a hub for innovation, manufacturing, and data center infrastructure, reinforcing the city’s economic momentum in the booming East Valley.Xnrgy Climate Systems’ expansion marks a major win for Mesa’s industrial market and workforce. With 330,000 square feet secured at Centris Industrial, the company is on track to produce 3,000 air-cooled chillers annually and employ up to 500 people at full buildout. This growth highlights Mesa’s position as a hub for innovation, manufacturing, and data center infrastructure, reinforcing the city’s economic momentum in the booming East Valley.