Two-phase direct-to-chip liquid cooling firm Accelsius has raised $65 million in equity funding.

The Series B funding round was led by Johnson Controls, with investment from Legrand.

Accelsius said the funding will speed expansion of its Austin production facility, accelerate global expansion, and support the rollout of its proprietary, two-phase liquid cooling solutions.

“We are witnessing the dawn of a new era in digital infrastructure, where the ‘AI Factory’ replaces the traditional data center. To meet the demands of this age, we must build responsibly and efficiently at a gigawatt scale,” said Josh Claman, CEO, Accelsius. “The investment from industrial giants like Johnson Controls and Legrand is about more than just capital; it signals strong potential and accelerating adoption of two-phase approaches that deliver high-performing AI solutions with unmatched efficiency.”

Texas-based Accelsius was originally founded in 2022 by Nasdaq-listed industrial firm Innventure to commercialize technology developed by Nokia’s Bell Labs that had not been productized.

Direct-to-chip systems usually rely on water, which has a high heat capacity, but Accelsius is using a dielectric coolant, allowing it to boil in the circulating system to remove more heat.

“AI-scale computing is rewriting the thermal playbook. Our investment in Accelsius aligns with Johnson Controls’ strategy and commitment to deliver advanced, high-efficiency cooling solutions that enable operators to deliver AI solutions rapidly, now and in the future,” said Austin Domenici, Vice President and General Manager, Global Data Center Solutions at Johnson Controls.

Johnson Controls previously announced its investment in Accelsius in October.

Accelsius has deployed its technology at several data center labs, and recently posted on LinkedIn that its NeuCool Thermal Simulation Rack is headed to London for deployment at Telehouse’s new Liquid Cooling Lab. It has also deployed a cooling system to an Equinix lab in Virginia and at Park Place Technologies’ new facility in Cleveland, Ohio.

“The data center industry is facing a critical inflection point where thermal management is no longer just a facility concern, but a strategic imperative for IT performance,” said Brian DiBella, president and CEO of Legrand, North and Central America. “Accelsius’ two-phase, direct-to-chip technology offers a clear path to supporting the heat densities of AI workloads while improving energy efficiency. We are proud to invest in a company that is not only innovating but doing so with a focus on sustainability and operational practicality.”