ZutaCore Ltd. raises $100M in Series C

ZutaCore Ltd. has secured $100 million in a Series C funding round to advance its waterless liquid cooling technology tailored for AI data centers. This funding aims to propel the deployment of ZutaCore’s direct-to-chip, two-phase liquid cooling systems, which provide an alternative to conventional air- and water-based cooling solutions that are increasingly inadequate for high-powered AI processors.

The company's core technology, known as HyperCool, employs a sealed, closed-loop system using dielectric fluid. This fluid boils directly at the chip, efficiently carrying away heat without the risk associated with water-based systems. The technology promises to reduce cooling energy consumption by around 50% compared to traditional systems. Notably, ZutaCore's solution avoids the use of large amounts of water, addressing regulatory and environmental concerns, especially in arid regions. This system can be retrofitted into existing data center racks, offering flexibility and ease of implementation.

ZutaCore's strategy is focused on scaling its technology to meet the rising demands of AI and high-performance computing environments, which increasingly require cooling capacities far beyond those managed by air systems. The funding will not only support global commercialization but also bolster research and development, alongside megawatt-class deployments. The company is expanding its leadership team and global presence to cater to growing demand, spanning more than 75 deployments across the Americas, Europe, and Asia. The recent launch of the OmniTherm cold plate for Nvidia's RTX PRO 6000 Blackwell Server Edition is part of its plan to capture the AI and standardized server market.

The round was backed by significant investors, including Mitsubishi Electric Corp., Carrier Ventures, and Samsung Venture Investment Corp., with Goldman Sachs & Co. acting as the exclusive placement agent. This coalition of investors underscores confidence in ZutaCore's ability to address the increasing complexities of AI infrastructure demands.

Looking ahead, ZutaCore will likely focus on navigating the complexities of integrating its technology across an evolving data center landscape. With AI transforming data center requirements, the company's ability to efficiently scale its innovative cooling technology will be vital in securing competitive positioning and addressing environmental concerns. Future milestones include further international expansion and ongoing enhancements to its product lineup to continue accommodating the escalating power density in AI data infrastructures.