Iceotope Secures $26 Million to Accelerate Liquid Cooling Development for AI Data Centers
May 18, 2026
Iceotope Secures $26 Million to Accelerate Liquid Cooling Development for AI Data Centers
The rapid expansion of artificial intelligence workloads is straining traditional data center cooling systems, pushing operators to seek more efficient alternatives. In a sign of growing investor confidence in this shift, UK-based liquid cooling specialist Iceotope has closed a $26 million funding round to support its research and development efforts.
The investment was led by Two Seas Capital and Barclays Climate Ventures, with participation from existing backers including Edinv, ABC Impact, Northern Gritstone, and the British Business Bank. Iceotope said the capital will be used to advance product and engineering development, expand its patent portfolio, and accelerate ecosystem partnerships aimed at bringing integrated cooling solutions to market.
Simon Jesenko, CEO and CFO of Iceotope, said the backing from high-caliber investors validates both the company’s technology and its 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,” he said. “The opportunity ahead – both directly with customers and through our partner ecosystem – is significant.”
Founded in 2005, Iceotope specializes in high-performance computing, cooling, and modular data center infrastructure. The rise of AI has shifted its focus toward meeting the needs of hyperscale cloud providers, whose increasingly dense server racks generate far more heat than conventional air-based systems can handle. Liquid cooling offers a way to manage that thermal load more efficiently while reducing overall energy consumption.
Steven Poulter, head of Barclays Climate Ventures, emphasized the timeliness of Iceotope’s approach. “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,” he said. “Its approach not only meets the escalating demands of AI and high-performance computing but also materially advances data center 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.”
The funding round underscores a broader industry trend: as AI workloads proliferate, data center operators are under mounting pressure to adopt cooling technologies that can keep pace with higher power densities while also meeting sustainability targets. Iceotope’s ability to attract a mix of climate-focused and strategic investors suggests that the market for advanced thermal management solutions is poised for rapid growth.
Source: datacenterdynamics
