Arizona Set To Have Two Major Facilities In Greater Phoenix Area

XNRGY Climate Systems to construct new manufacturing facility and headquarters in Mesa while Fortescue is set to build hydrogen production plant in Buckeye.

In Mesa, AZ, XNRGY Climate Systems (XNRGY), a North American leader in sustainable HVAC solutions, celebrated the groundbreaking of its new state-of-the-art manufacturing facility and U.S. headquarters on April 16. The event marks the beginning of a major expansion for XNRGY, solidifying its commitment to the U.S. market and sustainable climate control solutions. The facility is expected to commence operations in Q1 2025, creating over 900 new jobs.

XNRGY breaks ground on manufacturing facility. (Photo: Arizona Commerce Authority)

XNRGY Founder and CEO Wais Jalali and XNRGY executives including Sham Ahmed, Co-Founder, President, and General Manager, celebrated the groundbreaking alongside Sandra Watson, President and CEO of the Arizona Commerce Authority; Mesa Mayor John Giles, J. Brian O’Neill, Executive Director and CEO of Phoenix-Mesa Gateway Airport; Chip Wilson, Apache Junction Mayor and Phoenix Mesa Gateway Airport Authority Board Chair; Jacob Boyer, President of The Boyer Company, project partners, economic development and community leaders.

XNRGY’s new facility will be located at Gateway East at Phoenix-Mesa Gateway Airport. The first phase of the Arizona facility encompasses a 275,000-square-feet, surpassing XNRGY’s Montreal headquarters at 223,000-square-feet. This initial investment signifies a key milestone in XNRGY’s previously announced $300 million capital investment plan for the Mesa area. The groundbreaking ceremony represents the start of a four-phase development plan, ultimately creating a 1,000,000-square-foot sustainable manufacturing headquarters.

“XNRGY’s new manufacturing facility and U.S. headquarters are another example of why Arizona is the global destination for advanced industry,” said Governor Katie Hobbs. “We are proud XNRGY has chosen Arizona for its significant manufacturing operations, which will create hundreds of skilled jobs for Arizonans and strengthen the state’s sustainability leadership.”

“XNRGY’s commitment to sustainability means we focus on research and development to ensure our products offer maximum energy efficiency, reduced carbon footprints, and support for LEED certification across diverse applications,” said Wais Jalali, Founder and CEO of XNRGY.

“Today’s groundbreaking represents an exciting milestone for XNRGY’s Arizona operations,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “XNRGY’s sustainable manufacturing facility marks yet another company establishing headquarters in Arizona and will support the state’s thriving technology industries. We’re grateful to have an industry leader like XNRGY in our state, and we look forward to continue supporting the company’s long-term success in Arizona.”

“As Mesa continues to evolve as a hub for innovation, we are delighted to see XNRGY’s groundbreaking on their massive sustainable manufacturing hub,” said Mesa Mayor John Giles. “This significant investment not only underscores Mesa’s attractiveness for leading-edge companies but also reinforces our commitment to a greener future. With over 900 new jobs, this project exemplifies the intersection of economic growth and environmental stewardship.”

“By incorporating sustainable construction and development, XNRGY is leading by example,” said Chris Camacho, President and CEO, Greater Phoenix Economic Council. “The company’s manufacturing and sustainability focuses align directly with the emerging advanced tech core of Greater Phoenix, making Mesa the ideal landing spot for its monumental headquarters.”

“Today’s groundbreaking event is the first for Gateway East, a 273-acre world-class airport business park,” said Airport Director J. Brian O’Neill, A.A.E. “Phoenix-Mesa Gateway Airport Authority welcomes XNRGY to the Airport and is excited to have them leading the development of Gateway East.”

“We’re thrilled to see XNRGY break ground on their new facility at Gateway East,” said Matt Jensen, a partner with The Boyer Company. “As mentioned in 2022, XNRGY perfectly aligns with our vision for the development. Beyond the initial building, Gateway East’s infrastructure provides XNRGY with the flexibility and space to accommodate their ambitious growth plans. In today’s unique economic environment, we’re proud to have partnered with XNRGY and the State of Arizona to find creative solutions that benefit all parties. This groundbreaking signifies not just a new facility, but the start of a long and successful partnership.”

In Buckeye AZ, Fortescue Plans Green Hydrogen Facility

Fortescue marked a new phase in the development of the company’s $550 million venture into green hydrogen production in the United States, the first of Fortescue’s planned green energy investments in North America with a soil turn ceremony and renaming of its green hydrogen facility in Buckeye, Arizona to Arizona Hydrogen.

On May 2, Fortescue Executive Chair and Founder Dr. Andrew Forrest AO was joined by local government, economic development and community leaders including Gila River Indian Community Governor Steven Roe Lewis, Sandra Watson, President and CEO of the Arizona Commerce Authority and Buckeye Mayor Eric Orsborn.

Dr. Andrew Forest AO, Steven Roe Lewis, Sandra Watson, and Buckeye Mayor Eric Orsborn breaking ground on new hydrogen facility. (Photo: Arizona Commerce Authority)

At the 158-acre facility site, Dr. Forrest praised the Biden Administration’s commitment to the energy transition, but cautioned there is more work to be done.

According to new economic data from NDP Analytics, during the two-year construction phase, Arizona Hydrogen has the potential to create up to 2,244 direct, indirect, and induced jobs that could earn $124.2 million in wages. The facility could add $187.8 million to Arizona’s GDP and generate a potential $31.7 million in income and sales taxes for state and local governments.

During the operation phase, Arizona Hydrogen is expected to employ 40 people at the facility itself, as part of a potential 431 direct, indirect, and induced jobs that could earn $29.3 million in wages. Arizona Hydrogen could also add $59.2 million to Arizona’s GDP, and generate $9.1 million income and sales taxes for state and local governments annually.

“Today is an exciting milestone for the future of Arizona’s clean energy economy,” said Watson. “Arizona Hydrogen strengthens Arizona’s position as a national sustainability leader at the forefront of clean energy technologies and innovation. We are grateful to Dr. Forrest and the entire Fortescue team for their commitment to Arizona, and we look forward to supporting Fortescue’s long-term success in Buckeye.”

“Buckeye is happy to welcome Arizona Hydrogen to the Sustainable Valley,” said Buckeye Mayor Eric Orsborn. “Fortescue’s investment in our community helps Buckeye, and the entire state of Arizona, continue to grow efficiently and sustainably for generations to come.”

Arizona Hydrogen is slated to produce up to 11,000 tons of liquid green hydrogen annually and is strategically positioned to significantly contribute to the decarbonization of the heavy-duty on-road transportation sector. The southwest market consumes approximately 5 billion gallons of diesel annually in heavy-duty transport, making PHH a vital player for reducing emissions in the mobility sector.

Check out all the latest news related to Arizona economic development, corporate relocation, corporate expansion and site selection.


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