Iceotope, a precision liquid cooling technology startup, has raised $26 million in a Series B funding round led by Two Seas Capital and Barclays Climate Ventures, with participation from existing investors Edinv, ABC Impact, Northern Gritstone and British Patient Capital. Iceotope develops liquid cooling systems for AI infrastructure, data centres and edge computing environments. The funding will be used to advance product and engineering development, expand the patent portfolio and accelerate ecosystem partnerships bringing solutions incorporating Iceotope technology to market.
AI infrastructure is driving rack power densities toward 1MW and beyond, which Iceotope states makes air cooling and direct-to-chip liquid cooling insufficient. Precision liquid cooling technology developed by Iceotope is designed to enable systems to operate at maximum efficiency in any environment while reducing the energy use and water consumption required for cooling.
As AI and high-performance computing move beyond the data centre into enterprise and edge deployments, thermal management requirements are also increasing. According to SemiAnalysis, the liquid-cooled AI accelerator installed base is projected to grow from approximately 3GW to 40GW within two years, driven by hyperscaler and colocation adoption of AI workloads that conventional cooling architectures cannot sustain. Iceotope stated that liquid cooling technology is also applicable in extreme edge deployments where thermal management constraints are demanding.
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.
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.
