(News)

Leading Strataphy’s $6M Seed Round

25.11.2025

Cooling is often treated as background infrastructure. Today, more than ever, that statement rings increasingly outdated. As Saudi Arabia and the wider GCC accelerate major developments, from giga-projects to industrial zones, cooling has become a central force shaping what can be built, and the strain on existing systems is ever-growing. With the accelerating pace of AI clusters, cooling technologies will undoubtedly be a foundational requirement for the region’s next chapter of development. 

The market is both big and growing. In high-heat economies, cooling already accounts for a substantial share of total electricity demand, making up nearly half of peak electricity demand and around 25% of annual demand. In the Gulf specifically, AC represents up to 70% of peak demand in commercial and residential buildings, with cooling responsible for roughly  40% of the Kingdom’s total annual consumption. 

Strataphy was built seeing the opportunity in this challenge.  

Strataphy addresses the most energy-intensive stage of cooling and aligns cooling performance with the region’s long-term climatic reality. Its proprietary PrimeLoop™ technology uses the subsurface as a stable thermal sink for heat rejection. Instead of forcing HVAC systems to expel heat into outdoor air that can exceed 40°C, PrimeLoop™ circulates fluid through a closed loop underground where temperatures remain stable throughout the year. This reduces the temperature lift required by compressors and lowers electricity consumption by 40% to 50%, all while stabilizing  performance during peak summer heat. 

The thesis of Strataphy comes in strong contrast to the status quo. District cooling, the current default system, runs into structural limitations. Its strengths rely on dense urban clusters, heavy civil works and plenty of water requirements; conditions that do not match the region’s increasingly distributed, rapidly evolving developments. This becomes even more acute with the rise of AI infrastructure, where cooling can make up 30–70% of data-center electricity use. With the GCC’s data center market set to at least triple within the next decade, every increment of compute becomes heat that must be removed.

In addition to the economic unlocks, Strataphy also delivers meaningful architectural advantages. With air-side heat rejection units made obsolete, cooling plants can be placed indoors or within secure, climate-controlled enclosures. This protects equipment from extreme heat, dust, and solar load, extending lifespan and reducing maintenance. For data centers, government facilities, giga-developments, and high-security sites, bringing cooling hardware indoors enhances reliability, security, and design flexibility.

Our conviction in the market and problem is reinforced by the strength of Strataphy’s team. The founders, Ammar Alali and Ahmed Alhani, bring more than 15 years of highly relevant energy experience, pairing deep technical expertise with the commercial discipline needed to drive strong margins and validate cooling-as-a-service as a model. With their traction today, and having major regional clients such as NEOM, King Abdullah Economic City, and Saudi Tabreed, the company is demonstrating both performance and reliability in one of the most critical frontiers. We’re proud to lead their $6M seed round as Strataphy builds the thermal infrastructure powering the GCC’s and world’s next decade of growth.