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xarray is one of key packages in Pangeo.

Step-by-step guide for 10.8

1. !conda update -y -n base -c defaults conda

2. !conda install -y xarray

Step-by-step guide for 10.7.1

ArcGIS 10.7.1 Notebook Server has a bug that doesn't allow to use conda for installing xarray.

Step-by-step guide

You need to use pip instead of conda.

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import xarray as xr
import numpy as np
data = xr.DataArray(np.random.randn(2, 3), dims=('x', 'y'), coords={'x': [10, 20]})
print(data)

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