NovoLINC Secures $10.2M Seed Funding to Commercialize Advanced Cooling Tech for AI Data Centers
January 8, 2026
The relentless growth of artificial intelligence and high-performance computing is pushing data center infrastructure to its limits, with heat dissipation emerging as a critical bottleneck. Efficient cooling is no longer just an operational concern but a fundamental requirement for sustainability and performance, as cooling systems can consume up to 40% of a data center's total energy.
Addressing this challenge, NovoLINC, a thermal management startup spun out of Carnegie Mellon University in 2024, has raised $10.2 million in a seed funding round. The investment, detailed in a June 9 filing with the U.S. Securities and Exchange Commission, was co-led by Fathom Fund and TDK Ventures. The round also saw participation from investors including Foothill Ventures, M Ventures, Carnegie Mellon University, and Hitachi Ventures.
NovoLINC develops a proprietary thermal interface material (TIM) designed to manage the intense heat generated by powerful AI and computing chips more effectively than conventional solutions. The company argues that as chip power increases, existing TIMs are becoming inadequate. Its technology, which facilitates a more efficient transfer of heat, is positioned to support the industry's accelerating shift toward liquid cooling systems.
The fresh capital will be directed toward scaling manufacturing capabilities, expanding research and development efforts, and growing the business to meet rising customer demand. “Our team is collaborating closely with industrial partners to accelerate the manufacturing scale-up and the commercialization of our technology to meet the surging needs of high-power computing and sustainable AI data center operations,” said co-founder and CEO Ning Li in a statement.
The potential impact of the technology is significant. NovoLINC estimates that by 2030, its TIM could reduce global data center energy consumption by over 30 terawatt-hours annually—an amount of electricity sufficient to power approximately 2.8 million U.S. homes for a year. This aligns with growing pressure to make data centers, especially those powering energy-intensive AI, more sustainable. Tina Tosukhowong, investment director at TDK Ventures, highlighted this urgency, noting, “As 40% of a data center’s energy consumption goes toward cooling, NovoLINC is tackling one of the most pressing technical challenges in the industry.”
Since its launch, NovoLINC has gained industry recognition through acceptance into the Open Compute Project Startup Member Program and the NVIDIA Inception Program, and was named a Pittsburgh Technology Council top 50 honoree.
Source: technical.ly
