Iceotope announced it has raised $26 million in Series B funding to accelerate the development of its precision liquid-cooling technology for next-generation AI infrastructure. The round was led by Two Seas Capital and Barclays Climate Ventures, with participation from existing investors Edinv, ABC Impact, Northern Gritstone, and British Business Bank.
The company said the new funding will support product and engineering development, expansion of its patent portfolio, and broader ecosystem partnerships intended to bring systems using Iceotope’s cooling technology to market more quickly.
Iceotope believes AI infrastructure is nearing a thermal inflection point as next-generation GPU and accelerator systems push rack power densities toward 1MW and beyond. The company said traditional air cooling and direct-to-chip liquid cooling approaches are becoming insufficient for these increasingly power-intensive AI workloads.
As AI and high-performance computing workloads move beyond centralized data centers into enterprise and edge deployments, Iceotope said thermal management challenges are also expanding into new operating environments. The company’s precision liquid cooling platform is designed to help systems maintain efficiency while reducing energy usage and water consumption associated with cooling infrastructure.
According to data cited from SemiAnalysis, the installed base of liquid-cooled AI accelerators is expected to increase from about 3GW to 40GW within two years as hyperscalers and colocation providers expand AI deployments that conventional cooling architectures cannot sustain.
Iceotope added that its liquid cooling technology is also applicable for edge deployments where thermal management requirements are especially demanding.
Founded in 2005, Iceotope has evolved from a green computing research venture into a specialist in precision liquid cooling systems for data centers and edge infrastructure. The company said it currently holds 219 granted and pending patents tied to its chassis based precision liquid cooling technology.
KEY QUOTES:
“Securing such high-caliber investors validates both our technology and our market timing. We’ve spent years developing a robust, differentiated IP portfolio and products purpose-built for AI infrastructure, and we’re ready to scale at precisely the moment the industry demands more advanced, sustainable cooling technology. The opportunity ahead – both directly with customers and through our partner ecosystem – is significant.”
Simon Jesenko, CEO and CFO, Iceotope
“With AI adoption rapidly increasing globally, Iceotope’s liquid-cooling technology offers a timely and innovative solution to the mounting limitations of traditional cooling systems. Its approach not only meets the escalating demands of AI and high-performance computing but also materially advances datacenter sustainability. Aligned with Barclays Climate Ventures’ mandate to invest in commercially scalable climate technologies, we believe Iceotope is strongly positioned in a growing market and capable of significantly improving energy efficiency in a critical sector.”
Steven Poulter, Head of Barclays Climate Ventures
