Iceotope Raises $26M Series B To Improve Cooling For AI Data Centers

The company will use the capital to advance product and engineering development, expand its patent portfolio, and strengthen ecosystem partnerships to bring its cooling solutions to market.

As AI infrastructure rapidly evolves, rack power densities are expected to reach 1MW and beyond, making traditional air cooling and direct-to-chip methods increasingly inadequate.

With AI and high-performance computing expanding from data centers to enterprise and edge environments, thermal management challenges are intensifying.

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Iceotope’s precision liquid cooling technology is designed to address this shift by improving system efficiency while significantly reducing energy and water consumption.

Industry forecasts, including from SemiAnalysis, predict liquid-cooled AI accelerator capacity could grow from around 3GW to 40GW within two years, driven by hyperscaler adoption.

Founded in 2005 as a green computing initiative, Iceotope has become a specialist in liquid cooling for AI, HPC and edge infrastructure. Its chassis-based approach replaces air cooling with liquid thermal management across systems, improving efficiency and sustainability.

The company holds more than 200 patents and continues expanding its technology for data center and edge deployments.

We’ve spent years developing a differentiated IP portfolio and products purpose-built for AI infrastructure, and we’re now focused on scaling alongside growing demand for more advanced and sustainable cooling technologies, said Simon Jesenko, CEO and CFO of Iceotope.