Iceotope Raises $26m as AI Rack Densities Outpace Air Cooling
May 15, 2026 - 8:33 am
Barclays Climate Ventures and Two Seas Capital led a $26 million Series B round for British precision-liquid-cooling company Iceotope, with existing investors ABC Impact, Northern Gritstone, Edinv, and British Patient Capital all participating.
Iceotope, a British precision-liquid-cooling pioneer, is addressing the growing challenge of cooling AI hardware as rack power densities surge past air cooling's limits. Their unique chassis-based precision liquid cooling approach replaces air with a dielectric fluid circulated directly around server components, eliminating noisy fans and water-intensive towers.
The investment timing aligns with the rapid growth of liquid-cooled AI accelerators. According to SemiAnalysis projections, the installed base will skyrocket from 3 GW to 40 GW in just two years, driven by hyperscalers and colocation providers compelled to adopt liquid cooling for demanding AI workloads.
Iceotope points to notable operator adoption, such as Firmus, a Nvidia-backed company building fully liquid-cooled AI factories across Australia, powered by 36,000 GB300 Grace Blackwell chips.
The company's strength lies in its robust 219-strong patent portfolio, covering both granted and pending patents, and an early claim on chassis-level liquid cooling developed since 2005. Their product line includes:
- KUL BOX: Designed for edge and AI deployments requiring space and noise optimization.
- KUL AI: Tailored for high-density rack deployments in cutting-edge AI data centers.
This technology offers near-silent operation and minimal water usage, addressing both cooling performance and sustainability concerns.
“Securing such high-caliber investors validates both our technology and our market timing,” said Simon Jesenko, Iceotope's CEO and CFO.