Liquid cooling firm Iceotope has closed $26 million funding round to help fund its R&D efforts.

The investment was led by Two Seas Capital and Barclays Climate Ventures, with participation by existing investors Edinv, ABC Impact, Northern Gritstone, and British Business Bank.

UK-based Iceotope will use the funding “to advance product and engineering development, expand its patent portfolio and accelerate ecosystem partnerships that will bring solutions incorporating Iceotope technology to market.”

Simon Jesenko, CEO and CFO of Iceotope, said: “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.”

Iceotope was founded in 2005 and specializes in HPC computing, cooling, and modular data center infrastructure technologies, and the advent of AI has seen it turn its attentions to meeting the needs of the hyperscalers and their increasingly dense data centers.

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