ZutaCore Ltd. announced today that it has raised $100 million in new funding to scale deployments of its waterless liquid cooling technology as artificial intelligence chips push data center cooling past what air- and water-based systems were built to handle.

The company sells direct-to-chip, two-phase liquid cooling that allows systems to run without water and roughly halves cooling energy use against conventional setups. Two-phase cooling moves heat by boiling a dielectric fluid directly at the chip, a method ZutaCore argues scales better than water-based systems as processor power climbs.

The company markets its core platform as HyperCool, a sealed, closed-loop system that pumps a dielectric fluid through cold plates mounted directly on top of the processors. Because the fluid is nonconductive and the loop is enclosed, a leak does not short out the electronics, a failure mode that has long made data center operators wary of running liquid near live hardware. The cold plates attach to chips from Intel Corp., Advanced Micro Devices Inc. and Nvidia Corp. The heat is carried off as vapor to a coolant distribution unit, where it condenses and recirculates.

ZutaCore’s main selling point is what it leaves out. Many large data centers rely on evaporative cooling that consumes millions of gallons of water a year, a cost that has drawn regulatory attention and local opposition in dry regions. ZutaCore says its system removes that draw entirely and can retrofit into existing racks rather than needing a purpose-built facility.

Its platform is built to cool next-generation AI and high-performance computing processors drawing more than 4,000 watts, well beyond what air cooling can handle and at the edge of what conventional single-phase liquid systems manage. Operators are increasingly facing rack densities in the multimegawatt range as they build out AI infrastructure.

The funding will go toward global commercialization, additional research and development and support for megawatt-class deployments. ZutaCore is also expanding its leadership team and international footprint to match demand.

ZutaCore says it has logged more than 75 deployments across the Americas, Europe and Asia. The company recently introduced its OmniTherm cold plate, which brings two-phase cooling to Nvidia Corp.’s RTX PRO 6000 Blackwell Server Edition in a single-slot PCIe form factor for standard enterprise and AI cloud servers. It has also built a 2-megawatt end-of-row emulation platform at its facility in Israel to test deployments at large scale before shipping to customers.

“$100 million of funding reflects strong validation from leading global partners and growing demand for our technology,” said Chairman and Chief Executive Erez Freibach. “AI is fundamentally reshaping data center infrastructure and traditional approaches are no longer sufficient.”

The Series C round included investments from Mitsubishi Electric Corp., Carrier Ventures and Samsung Venture Investment Corp., the corporate venture arm of Samsung Electronics Co. Ltd., along with additional investors. Goldman Sachs & Co. acted as the exclusive placement agent on the raise.

Image: ZutaCore