Iceotope Group has raised $26 million in Series B funding to support the development of its precision liquid cooling technology.

The investment round was led by Two Seas Capital and Barclays Climate Ventures, with participation from existing investors Edinv, ABC Impact, Northern Gritstone and the British Business Bank.

Iceotope said the funding will be used to advance product and engineering development, expand its patent portfolio and accelerate ecosystem partnerships that will bring products using its technology to market.

The company is targeting growing demand for liquid cooling as AI and high-performance computing infrastructure places greater thermal demands on data centres. Next-generation GPU and accelerator platforms are increasing rack power densities, with Iceotope noting that some systems are moving towards 1MW and beyond.

That shift is creating challenges for conventional cooling approaches, particularly as AI workloads expand beyond hyperscale data centres into enterprise and edge environments.

According to SemiAnalysis, the installed base of liquid-cooled AI accelerators is expected to grow from around 3GW to 40GW within two years, driven by hyperscale and colocation adoption of AI workloads.

Simon Jesenko, CEO and CFO of Iceotope, commented, “Securing such high-caliber investors validates both our technology and our market timing,” stated Simon Jesenko, CEO and CFO of Iceotope. “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.”

Iceotope said its technology is designed to improve cooling efficiency while reducing the energy and water consumption associated with thermal management.