Iceotope, a UK maker of liquid cooling technology for data centres and edge computing, closed a $26m Series B round, it announced on 14 May 2026. Two Seas Capital and Barclays Climate Ventures led the round. Existing investors Edinv, ABC Impact, Northern Gritstone and British Business Bank took part. No valuation was disclosed.
BusinessCloud, which reported the round in pounds, put it at £20m and described Iceotope as a Sheffield firm. The company announced the amount in dollars, which is the figure used here.
“Securing such high-caliber investors validates both our technology and our market timing”Simon Jesenko, CEO and CFO, Iceotope
What Iceotope does
Iceotope calls its method precision liquid cooling. It uses what SiliconANGLE described as a direct-to-everything approach, in which liquid cools every component in a server, including processors, memory, storage and power supplies. That differs from cold-plate cooling, which works best on flat surfaces such as chips, and from air cooling.
SiliconANGLE reported that its two main products are Iceotope KUL AI, a data-centre-scale system for racks, and Iceotope KUL BOX, a smaller unit for individual servers at the network edge. Both use a non-flammable dielectric coolant instead of water to carry heat away from the hardware, according to the same report.
The company says its approach lets AI systems run at full power in almost any environment while using less energy and water. Its website now describes a business that designs cooling with server makers and licenses its technology to OEMs and ODMs, rather than only selling its own systems. It cites 228 pending, issued and allowed patents, up from the 219 in its funding announcement.
The market argument
The company says rack power densities are heading towards 1MW and beyond as new GPU and accelerator platforms arrive, which it argues is more than air cooling or direct-to-chip liquid cooling can handle. It also says AI and high-performance computing are moving out of core data centres into enterprises and the edge, where the heat problem follows.
The announcement cited a SemiAnalysis projection that the installed base of liquid-cooled AI accelerators will grow from about 3GW to 40GW within two years, a rise of more than ten times. That figure is a third-party forecast quoted by the company, and SiliconANGLE repeated it.
Simon Jesenko, a co-founder who is both chief executive and chief financial officer, said the investors validate the company's technology and its market timing. He added that the opportunity, both directly with customers and through partners, is significant.
What the money is for
Iceotope said it will use the funding to advance product and engineering development, expand its patent portfolio and speed up ecosystem partnerships that bring products using its technology to market. SiliconANGLE reported that most of the money will go on product development and engineering.
Steven Poulter, head of Barclays Climate Ventures, said the technology addresses growing limits on traditional cooling and improves data-centre sustainability, in line with the fund's mandate to back commercially scalable climate technologies.
Company background
Iceotope began in 2005 as a research-driven green computing venture, according to its announcement, and has since moved into precision liquid cooling for data centres and edge infrastructure. The BeBeez and Data Center Dynamics report on the round also gives 2005 as its founding year.
The company's news page lists an earlier funding round of £30m, announced in June 2022 and led by Singapore-based impact investor ABC Impact. The sources did not report total funding to date, headcount or revenue.
Company website: iceotope.com