Tracxn Report: Closing the Data Center Water Gap

Key takeaways:

·      Iceotope is named the UK's largest rack-level liquid-cooling company, having raised $107M since 2005 (including a $26M round in May 2026 backed by nVent, British Patient Capital, Barclays, and Northern Gritstone).

·      As AI rack power density climbs from ~20kW to135kW+ (with chips like NVIDIA's Blackwell now built for liquid cooling by design), precision dielectric cooling is no longer optional, it's foundational infrastructure.

·      With UK data centers now holding Critical National Infrastructure status and water stress projected to worsen sharply by2055, Iceotope leads the way with water-efficient cooling technology.

A new market report by Tracxn, a global market intelligenceplatform for private company data, confirms the United Kingdom's position asthe world's second-largest market for cooling and heat-reuse technology.According to the report, The Race to Cool Britain's AI Boom, that globalranking is anchored by just two companies: Iceotope and London-based Deep Green.

Iceotope: A UK Market Leader

Tracxn tracked 12 UK companies across the cooling and heat-reuse value chain, which have collectively raised approximately $362 million in disclosed equity funding to date. That figure places the UK second globally behind the United States and ahead of Singapore; these three markets account for about 91 percent of worldwide funding.

The report describes Iceotope and Deep Green as on two complementary paths to capital: Deep Green backed by a single strategic energy investor, and Iceotope built on a broader syndicate of venture and patient-capital backers assembled over more than a decade.

Demand Drivers: Power Density and Water Scarcity

The report ties this funding activity to accelerating physical demand. The International Energy Agency estimates global data-center electricity use will roughly double from about 485 TWh in 2025 to about 950 TWh by 2030, with rack power density rising from about 20 kW to more than 135 kW as processors such as NVIDIA's Blackwell GB200 NVL72 are built for liquid cooling by design.

The report also flags a regulatory gap: UK data-center water use currently falls outside dedicated mandatory reporting, and national water-resource planning has not yet accounted for data-center demand. As that framework tightens, water-efficient, dielectric liquid-cooling technology is expected to move from a competitive advantage to a compliance requirement.

Iceotope’s Position

"We've spent years developing a robust, differentiated IP portfolio and products purpose-built for AI infrastructure, and we're ready to scale at precisely the moment the industry demands more advanced, sustainable cooling technology," said Simon Jesenko, CEO and CFO of Iceotope. "The opportunity ahead, both directly with customers and through our partner ecosystem, is significant.”

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