Israel's ZutaCore Completes Over $100 Million Series C Funding to Boost AI Liquid Cooling Technology
2026-06-18 14:06
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en.Wedoany.com Reported - On June 2, Israeli AI data center cooling technology company ZutaCore completed over $100 million in Series C funding. The round received support from Mitsubishi Electric, Carrier Ventures, Samsung Venture Investment Corporation (the corporate venture capital arm of Samsung Electronics), and other investors. The funds will be used to expand the global commercial deployment of water-cooling alternatives and advance liquid cooling technology research and development for artificial intelligence and high-performance computing infrastructure.ZutaCore completes $100 million Series C funding to scale AI liquid cooling

ZutaCore primarily develops waterless, direct-to-chip two-phase liquid cooling technology, with its core product being HyperCool. This technology uses a non-conductive liquid that absorbs heat and vaporizes near the chip, then removes heat through a condensation cycle, addressing thermal management challenges in AI servers, high-performance computing clusters, and high-density data centers. As single-rack power density continues to rise, traditional air cooling and some single-phase liquid cooling solutions face increasing pressure in terms of energy efficiency, stability, and space utilization.

This funding round will support ZutaCore in accelerating its global commercial expansion. The company stated that its technology has been deployed in over 75 locations across the Americas, Europe, and Asia, and is expanding applications for hyperscale data centers, cloud service providers, AI computing operators, and enterprise computing environments. For data center operators, cooling systems are no longer just auxiliary facilities but critical infrastructure affecting computing density, energy costs, equipment stability, and sustainable operations.

ZutaCore's technical approach focuses on "waterless" and "two-phase" solutions. The waterless design reduces the risk of short circuits caused by liquid leaks on electronic equipment, while two-phase cooling leverages the liquid phase-change process to improve heat transfer efficiency. This solution is designed for next-generation AI and high-performance computing processors, targeting chips with power exceeding 4000 watts and maintaining more stable thermal management under high-load operating scenarios.

Following the funding, ZutaCore has also expanded its management team. The company added roles such as Chief Financial Officer, Chief Operating Officer, Chief R&D Officer, and Chief People Officer to support global deployment, product innovation, and customer delivery. As AI servers enter higher power stages, liquid cooling technology companies need not only product performance but also scalable manufacturing, engineering delivery, data center integration, and global after-sales capabilities.

For investors, ZutaCore occupies a critical link in the expansion of AI infrastructure. The participation of Mitsubishi Electric, Carrier Ventures, and Samsung Venture Investment Corporation indicates that industrial equipment, HVAC, semiconductor, and data center ecosystem companies are increasing their focus on advanced cooling technology. AI computing construction has extended from chips, servers, and networks to underlying infrastructure such as power supply, cooling, facility design, and energy management.

ZutaCore's subsequent commercialization priorities will focus on onboarding large data center customers, compatibility of two-phase liquid cooling systems with existing cooling architectures, operational cost control, and high-power chip adaptation capabilities. If its waterless two-phase liquid cooling solution can operate stably in more high-density AI server rooms, liquid cooling technology may become a key direction for the next phase of data center thermal management upgrades.

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