Iceotope Technologies, a Sheffield-based provider of precision liquid cooling solutions for AI, HPC, and edge infrastructure, has raised $26M in Series B funding led by Two Seas Capital and Barclays Climate Ventures. The company delivers dielectric fluid directly to components like GPUs, CPUs, memory, storage, and PSUs in sealed chassis. The capital will accelerate product development, engineering, and ecosystem partnerships.
AI Heat Spurs Liquid Cooling Surge
The raise follows Ecolab's $4.75B acquisition of competitor CoolIT Systems in March 2026, signaling consolidation in AI cooling. Submer has raised $131M total for immersion systems, while LiquidStack secured over $20M in Series B funding in 2024. Iceotope's precision approach targets all components without full submersion or hardware mods, fitting rack densities exceeding 100kW.
Rack Densities Overwhelm Air Cooling
AI workloads push data center racks beyond 100kW, rendering air cooling obsolete according to industry reports. Current solutions like cold plates miss memory and storage, leading to hotspots. Iceotope claims 40% less power use, 96% less water, and 40% lower carbon emissions per company data.
Direct-to-Everything Beats Immersion
Iceotope's KUL BOX and KUL AI use minimal dielectric fluid in self-contained chassis, enabling near-silent operation and deployment without facility water. Unlike Submer's full immersion requiring modifications, Iceotope cools unmodified servers comprehensively. Partnerships with Dell, HPE, and Meta validate compatibility.
As Simon Jesenko, CEO/CFO, noted:
“We’ve spent years developing a differentiated IP portfolio and products purpose-built for AI infrastructure…”
Climate Investors Validate Efficiency
Barclays Climate Ventures, with £274M invested in climate tech, backs Iceotope for its energy efficiency in high-emitting data centers. Northern Gritstone, an early backer focused on UK deeptech, signals regional ecosystem support alongside government VC British Patient Capital. Two Seas adds AI infrastructure conviction.
Liquid Cooling Market Hits $27B
The data center liquid cooling market stands at $6B in 2026, projected to reach $27.1B by 2035 at over 25% CAGR per GMI. Iceotope holds 219 patents, leading innovation amid EU mandates for PUE and water reporting starting Q2 2026. Competitors like CoolIT Systems ($27M raised pre-acquisition) highlight capital intensity.
Patents Fuel Global Expansion
With 219 granted and pending patents, Iceotope hit a 200-patent milestone in April 2026. Active hiring for engineers and sales roles in Sheffield and US supports scaling. Funds target faster product roadmaps like KUL BOX enhancements for edge AI in factories and hospitals.