Strataphy Secures $6M to Revolutionise Cooling for Energy-Intense Infrastructure

Editorial Team

Last updated 25-11-2025

3 min

Strataphy, a Khobar-based startup, raised $6 million to transform cooling in energy-intensive infrastructure.

Their PrimeLoop technology utilises stable thermal energy to significantly cut electricity costs.

Major regional partners use Strataphy's Cooling-as-a-Service model to manage expenses flexibly.

Cooling demand is rising due to AI growth, making Strataphy's innovations increasingly vital.

Investors highlight cooling as a key opportunity in the Middle East's infrastructure transformation.

Strataphy, a deep‑tech startup based in Khobar, has secured 6 million dollars in seed funding as it pushes to reinvent how the world cools energy‑hungry infrastructure. The round was led by Outliers VC and Shorooq, with +VC also joining in. It’s quite a moment for a company working in a region where cooling is not just a utility but, frankly, a survival strategy. Cooling in the Middle East already costs more than 120 billion dollars every year, with Saudi Arabia alone accounting for around 13 billion. I remember chatting with a founder at an Arageek event who joked that in our part of the world, cooling is “the other national grid,” and honestly, he wasn’t far off.

Strataphy says the new capital will help scale its technology and expand deployments across giga‑projects, industrial sites and hyperscale data centres—places where heat buildup isn’t just an inconvenience but a major bottleneck. Cooling is now eating up nearly half of total electricity use in some sectors, and AI infrastructure is making that problem even thornier. As Dr Ammar Alali, the company’s co‑founder and CEO, put it, AI and industrial systems are growing faster than the cooling technologies meant to support them. His point about cooling outpacing semiconductors and servers in new hardware spending since 2022 is spot on, and a little alarming if I’m honest.

What Strataphy brings to the table is a system built around its proprietary PrimeLoop subsurface technology, which taps into deep and naturally stable thermal energy. The idea is to cool facilities—data centres included—while consuming far less power than conventional systems. And believe it or not, the company claims it has already cut electricity costs by up to 49 percent in commercial settings. On the flip side, subsurface systems can be a bit of a faff to install, but the team’s background helps: Alali and his co‑founder Ahmed Alhani spent more than 15 years working together at Saudi Aramco and other ventures, honing expertise in geothermal systems and subsurface exploration. That shared experience shaped PrimeLoop, which is designed specifically for hot‑climate regions rather than the colder environments traditional geothermal solutions were built for.

The startup already works with major regional players like NEOM, King Abdullah Economic City, Saudi Tabreed, Enersol, ADNOC Drilling and Alpha Dhabi Holdings. Many of these partnerships use Strataphy’s Cooling‑as‑a‑Service model, which turns geothermal cooling from a daunting capital investment into a predictable operating expense—a shift that I reckon will appeal to organisations wary of big upfront commitments.

Investors seem equally confident. Outliers VC’s founder Mohammed Almeshekah described cooling as one of the most overlooked opportunities in the region’s infrastructure transformation, noting that demand is rising sharply as AI adoption accelerates. Meanwhile, Shane Shin from Shorooq said the company isn’t just improving cooling systems but rethinking how energy, environment and infrastructure intersect in hot climates. Strong words, but not overcooked, considering how central cooling is becoming to the next wave of industrial and AI‑driven growth.

For a region racing into an AI‑powered future, Strataphy’s approach feels timely—maybe even crucial. And well… I mean, if the company really can make cooling both cheaper and more reliable, plenty of local operators will be chuffed to bits.

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