Canadian firm Xnrgy’s US headquarters to kick off large Mesa Gateway park

Xnrgy Climate Systems, a Canadian company that manufactures climate systems for data centers, has found a new home for its United States headquarters in the southeast Valley.

Montreal-based Xnrgy is the first tenant to ink a lease at the emerging Gateway East industrial park in southeast Mesa. As talks were finalized between Xnrgy and developer The Boyer Co., Mesa City Council approved a development agreement and the rezoning for the site on Monday night, clearing the way for the 273-acre park to move forward near the southwest corner of Ray and Ellsworth roads and east of the Phoenix-Mesa Gateway Airport.

Phase one of Xnrgy’s Mesa facility will include 250,000 square feet of production space and a 25,000-square-foot office.

As it proposed Gateway East earlier this year, Boyer was exploring build-to-suit opportunities for the tenants that would set up facilities and offices at the park. Xnrgy will be one of those opportunities for Boyer.

Matt Jensen, a partner at Boyer, said he expects to break ground on phase one of Xnrgy’s facility in the late third quarter or early fourth quarter. Xnrgy is using architecture firm Gensler for design work. A general contractor had not been selected as of Tuesday, Jensen said.

“This would be their U.S. headquarters and hopefully it’s the first of a couple of buildings for them,” he said. “Within that office space, they’ll have a showroom for their equipment that they’re making. … It’s going to be a pretty high-tech space.”

According to a company announcement, Xnrgy could develop an additional 750,000 square feet of manufacturing space for the Mesa site. To complete the build-out, construction is expected to be ongoing for the next five years. Upon full completion, Xnrgy is expected to employ more than 1,200 people at the park.

“This expansion is reflective of our steadfast commitment to our customers by providing them with additional production capacity, shorter lead times, and the latest climate tech innovations,” said Wais Jalali, the founder, chairman and CEO of Xnrgy, in a statement. “I am excited to embark on this next stage of growth with our valued partner, The Boyer Company, to better serve our customers.”

Xnrgy could not be immediately reached for comment about the lease.

Xnrgy first expressed interest in an Arizona expansion in early 2022, zeroing in on Mesa or Chandler before ultimately choosing a 38-acre site south of the Apple Inc. (Nasdaq: AAPL) data center on Elliot Road. Those plans then pivoted toward Gateway East. Jensen said talks between Xnrgy and Boyer have been ongoing for about a year.

Besides data centers, Xnrgy explores new ways to cool and heat facilities in several industries and the company said it plans on using the Mesa facility to focus on research and development and to facilitate the rapid demand for its climate systems, according to previous reporting.

Jensen previously said Gateway East will be developed in three phases, but on mainly a build-to-suit pace going north. Phase one will be built on 110 acres; phase two totals 100 acres; and phase three will be 63 acres, according to previous reporting on the project. Boyer will soon start work on the infrastructure for first phase of the park as well.