ZutaCore Raises $100M to Scale Waterless Cooling for AI Data Centers
June 2, 2026
ZutaCore Raises $100M to Scale Waterless Cooling for AI Data Centers
The rapid expansion of artificial intelligence workloads is placing unprecedented strain on data center cooling infrastructure, as high-performance chips generate immense heat that traditional air-based systems struggle to manage. Against this backdrop, ZutaCore, a provider of waterless liquid cooling technology, has secured $100 million in new funding to accelerate the deployment of its solutions for AI-driven facilities.
The funding round was led by existing investors, with participation from strategic partners in the data center and semiconductor industries. The company said the capital will be used to scale manufacturing capacity, expand its engineering team, and support growing customer demand across hyperscale and colocation data centers. ZutaCore’s technology uses a dielectric fluid to absorb heat directly from processors, eliminating the need for water in the cooling loop, which is a critical advantage in regions facing water scarcity.
“As AI models grow larger and more power-hungry, traditional cooling methods are hitting their limits,” said Erez Freibach, CEO of ZutaCore, in a statement. “Our waterless solution not only improves energy efficiency but also reduces operational risks tied to water availability and corrosion.” The company claims its system can cut cooling energy consumption by up to 50% compared to conventional methods, while supporting chip thermal design power levels exceeding 1,000 watts.
The investment comes amid a broader industry push toward sustainable data center operations. With global data center water usage projected to rise sharply due to AI expansion, waterless cooling technologies are gaining traction as both an environmental and economic necessity. ZutaCore’s technology is already deployed in several pilot projects with major cloud providers, and the new funding is expected to help the company move from early adoption to mainstream commercial rollout.
Industry analysts note that the waterless cooling market could see compound annual growth of over 25% in the next five years, driven by the convergence of AI chip density increases and regulatory pressure on water consumption. ZutaCore’s ability to scale its manufacturing and support infrastructure will be key to capturing a significant share of this emerging segment.
Source: siliconangle
