Iceotope raises USD $26 million in Series B funding

SOFIAH NICHOLE SALIVIO

News Editor

Iceotope has raised USD $26 million in a Series B funding round led by Two Seas Capital and Barclays Climate Ventures.

Existing investors Edinv, ABC Impact, Northern Gritstone and British Business Bank also participated. The company plans to use the funds for product and engineering development, patent expansion, and work with partners to bring systems based on its liquid cooling technology to market.

The fundraising comes as data centre operators and other computing users face mounting heat-management challenges from AI hardware. Iceotope argues that newer GPU and accelerator platforms are pushing rack power densities towards 1MW and beyond, levels that conventional air cooling and direct-to-chip liquid cooling cannot adequately support.

Iceotope develops precision liquid cooling systems for AI infrastructure, high-performance computing, and deployments outside traditional data centres. It says the same thermal challenges are spreading as AI workloads move into broader enterprise and edge environments.

Forecasts cited by the company point to rapid growth in liquid-cooled AI systems. SemiAnalysis estimates the installed base of liquid-cooled AI accelerators will rise from about 3GW to 40GW within two years, driven by hyperscale and colocation demand for AI workloads.

That expected growth has made cooling a bigger investment theme in AI infrastructure. Iceotope says the global data centre cooling market is projected to reach USD $40 billion to USD $45 billion by 2030, with liquid cooling accounting for USD $15 billion to USD $20 billion.

The company recently surpassed 200 granted and pending patents, expanding its intellectual property portfolio as competition intensifies in cooling systems for dense computing environments. The latest financing is expected to support further work in that area.

Iceotope says its technology can reduce energy use by up to 40% and water use by up to 96% compared with traditional cooling methods, while enabling higher rack density. Those gains could appeal to operators facing high electricity costs, water constraints and pressure to cut emissions.

Chief Executive Officer and Chief Financial Officer Simon Jesenko described the round as a sign of investor support for the company’s timing and product focus.

“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,” Jesenko said.

Barclays Climate Ventures said the investment reflects the limits of existing cooling systems as AI adoption rises.

“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,” said Steven Poulter, Head of Barclays Climate Ventures.