Saudi-based Strataphy raises $6 million to scale  cooling systems for AI infrastructure

Strataphy, a deep-tech company building cooling systems for AI and industrial infrastructure, has raised $6 million in seed funding to accelerate deployment of its proprietary cooling technology. The round was led by Outliers VC, with participation from Shorooq and PlusVC (+VC).

The investment comes as cooling becomes one of the biggest constraints on hyperscale data centre expansion and industrial growth, particularly in hot-climate regions where this phenomenon consumes nearly 50% of total electricity consumption. The Middle East remains one of the world’s fastest-growing cooling markets, valued at over $120 billion annually, including $13 billion in Saudi Arabia alone.

Strataphy plans to use the capital to advance its technology stack, expand its engineering and operations teams, and support new deployments across giga-projects, industrial facilities, and hyperscale data centres across the Gulf, North Africa and beyond.

At the core of Strataphy’s platform is PrimeLoop™, the company’s subsurface cooling technology designed to tap deep, stable thermal energy to cool infrastructure using significantly lower power. This approach aims to cut energy intensity, reduce operational costs, and help facilities meet rapidly rising cooling demand.

Strataphy was co-founded by Dr Ammar Alali and Ahmed Alhani, who have worked together for more than 15 years across Saudi Aramco and other ventures in subsurface exploration, geothermal systems, and energy optimisation. Their combined expertise forms the foundation of Strataphy’s system, engineered specifically for high-temperature regions where traditional geothermal solutions originally designed for heating in colder climates fall short.

The company already works with major regional clients, including NEOM, King Abdullah Economic City, Saudi Tabreed, Enersol, ADNOC Drilling, and Alpha Dhabi Holdings. Through its Cooling-as-a-Service (CaaS) model, Strataphy allows organisations to adopt geothermal cooling with minimal upfront investment while benefitting from reduced long-term energy consumption and improved reliability.

“AI and industrial infrastructure are scaling faster than the systems that keep them cool and efficient. In AI hardware, cooling has quietly outpaced semiconductors, servers, and even data centres as the largest driver of net-new hardware spending since 2022,” Alali, co-founder and CEO of Strataphy, said.

Investors say Strataphy is positioned at a critical intersection of energy, infrastructure, and the region’s AI push. Mohammed Almeshekah, Founder and General Partner at Outliers VC, said: “Cooling remains one of the most overlooked opportunities in the region’s broader infrastructure transformation. As demand accelerates and AI adds further pressure, efficient and scalable cooling is becoming essential for sustained growth.”