Strataphy Raises $6 Million to Revolutionize Cooling for AI and Industrial Infrastructure

Strataphy,  a deep-tech company focused on transforming how AI and industrial infrastructure are cooled, has secured $6 million in seed funding. The round was led by Outliers VC and Shorooq, with participation from PlusVC, and will support the company’s expansion across giga-projects, industrial facilities, and hyperscale data centers in the MENA region and beyond.

Cooling has emerged as a critical constraint on hyperscale expansion and industrial growth, particularly in hot-climate regions where it accounts for nearly 50% of total electricity consumption across sectors. The Middle East represents one of the world’s largest and fastest-growing cooling markets, valued at over $120 billion annually, with Saudi Arabia alone contributing $13 billion.

Strataphy’s platform, powered by its proprietary PrimeLoop™ subsurface technology, leverages deep, stable thermal energy to cool infrastructure with significantly lower power requirements. This approach enables commercial and industrial facilities, including data centers, to reduce energy intensity, cut operating costs, and meet rising cooling demands in high-temperature environments.

Founded by Dr. Ammar Alali and Ahmed Alhani, Strataphy builds on over 15 years of experience in subsurface exploration, geothermal systems, and energy optimization, including work at Saudi Aramco. PrimeLoop is designed specifically for hot regions, overcoming the limitations of conventional geothermal systems originally intended for heating in colder climates.

The company’s clients and partners include NEOM, King Abdullah Economic City, Saudi Tabreed, Enersol, ADNOC Drilling, and Alpha Dhabi Holdings. Strataphy’s Cooling-as-a-Service model converts geothermal cooling from a capital-intensive investment into a predictable operating cost, enabling organizations to deploy advanced cooling systems with minimal upfront expenditure while improving long-term energy efficiency and reliability.

PrimeLoop has already demonstrated commercial viability, delivering electricity cost reductions of up to 49% compared with conventional cooling methods. The system offers scalable, reliable, and energy-efficient solutions for some of the world’s hottest regions, addressing the growing infrastructure demands of AI, industrial, and commercial sectors.

With the new funding, Strataphy plans to advance its technology, expand its full-service platform, and grow its engineering and operations teams to support further deployments. The company aims to establish a robust foundation for next-generation cooling solutions that meet surging demand while driving sustainability and performance across the region.