Iceotope raises £19.2m to deploy precision liquid cooling for denser AI racks
This article covers Iceotope, an AI startup, closing a £19.2m growth funding round led by Two Seas Capital and Barclays Climate Ventures to accelerate its precision liquid cooling technology for next‑generation AI and high‑performance computing infrastructure. The funding will support product and engineering development, expand the startup's patent portfolio and deepen partner integrations to enable deployment across hyperscalers, colocation providers, enterprises and edge sites.
Iceotope Group, an AI startup, has closed a £19.2m growth funding round to accelerate its precision liquid cooling technology for next‑generation AI and high‑performance computing infrastructure. The round was led by Two Seas Capital and Barclays Climate Ventures, with participation from existing backers including Edinv, ABC Impact, Northern Gritstone and British Patient Capital, and will be used to speed product and engineering development, expand the company’s patent portfolio and deepen partner integrations.
Why it matters
AI hardware is moving into a thermal inflection point as next‑generation GPUs and accelerators push rack power densities toward 1MW and beyond. That rise in power density makes conventional air cooling and many direct‑to‑chip approaches increasingly inadequate. If cooling cannot keep pace, deployment of advanced AI workloads across hyperscalers, colocation providers, enterprises and extreme edge sites will be constrained.
Industry modelling cited by Iceotope suggests the installed base of liquid‑cooled AI accelerators could grow from roughly 3GW to 40GW within two years, driven by hyperscaler and colocation adoption. That scale of change would create significant demand for alternative thermal management approaches that cut energy and water use while enabling denser compute deployments.
Inside the product
Iceotope sells a chassis‑based precision liquid cooling system that surrounds and cools multiple infrastructure components. The company positions this approach as a way to keep whole systems at optimal operating temperatures across a variety of environments, from core data centres to edge locations where space, noise and cooling resources are limited.
The business highlights a large intellectual property position: 219 patents granted and pending. Iceotope also emphasises low water use and near‑silent operation as practical advantages for enterprise and edge customers that cannot rely on large‑scale chilled‑water plants or heavy air‑conditioning.
Who are the investors?
The £19.2m growth funding round was led by Two Seas Capital and Barclays Climate Ventures. Existing investors Edinv, ABC Impact, Northern Gritstone and British Patient Capital also participated.
The financing is framed as both a technology and market timing play. Iceotope says proceeds will fund product and engineering work, extend its patent estate and accelerate partnerships that can integrate its chassis into customer and partner solutions. The company has a prior funding history and recent milestones that include a 2022 £30m round led by ABC Impact and recognition in industry lists for next‑gen cooling.
In the announcement, Steven Poulter, Head of Barclays Climate Ventures, said:
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.
Its approach not only meets the escalating demands of AI and high-performance computing but also materially advances datacenter 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.
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Founder perspective
In the announcement, Simon Jesenko, CEO and CFO of Iceotope, said:
Securing such high-caliber investors validates both our technology and our 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. The opportunity ahead – both directly with customers and through our partner ecosystem – is significant.
Jesenko’s comments underline Iceotope’s focus on turning a long research and patent lead into deployable systems as demand for denser AI racks rises. The company is emphasising integration with partners rather than selling only components, signalling a route to wider adoption via OEMs, system integrators and datacentre operators.
The bigger picture
The raise sits at the intersection of two trends: rapid growth in AI compute demand and greater investor interest in climate‑focused technologies that improve data centre efficiency. For the UK and Europe, companies such as Iceotope represent engineering‑led propositions that could capture export opportunities as hyperscalers and regional operators seek more efficient cooling options.
The deal also reflects growing interest from AI investors in infrastructure technologies that address energy and sustainability constraints. As AI workloads proliferate beyond core data centres into enterprises and edge sites, thermal management will become a critical enabler for deployment and for meeting regional sustainability targets.
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