Strataphy, a deep-tech company based in Khobar, Saudi Arabia, specializing in pioneering subsurface-powered cooling for AI and industrial infrastructure, has successfully secured $6 million in a seed funding round. The investment was led by Outliers VC, with participation from Shorooq Partners and Plus VC. This capital injection will be used to advance the company’s proprietary technology, expand its comprehensive full-service cooling stack, and grow its engineering and operations teams to support new, large-scale deployments across giga-projects, industrial facilities, and hyperscale data centers both within MENA and globally.
Addressing the Cooling Constraint on Hyperscale Growth
Cooling has become one of the most critical bottlenecks for industrial and technological expansion, particularly in hot-climate regions like the Middle East. Cooling systems consume nearly 50% of the total electricity used across various sectors. The Middle East represents one of the world’s largest and fastest-growing cooling markets, estimated at over $120 billion annually, with Saudi Arabia alone accounting for $13 billion. Strataphy’s platform directly addresses this pressure point, which is amplified by the exponential power density requirements of modern AI hardware and data centers.
PrimeLoop™: A New Approach to Geothermal Cooling
At the core of Strataphy’s solution is PrimeLoop™, a proprietary subsurface cooling technology purpose-built for high-temperature environments. Co-founded in 2022 by Dr. Ammar Alali (MIT PhD in Earth Sciences and Energy Systems) and Ahmed Alhani, the system leverages deep, stable geothermal energy to cool infrastructure with drastically reduced power requirements compared to conventional systems. The founders’ 15 years of shared experience in subsurface exploration and energy optimization, including at Saudi Aramco, led to the development of PrimeLoop to overcome the limitations of traditional geothermal systems designed for heating in colder climates.
Proven Efficiency and Key Regional Partnerships
Strataphy has successfully demonstrated the commercial viability of its technology, documenting electricity cost reductions of up to 49% compared to conventional cooling systems. This efficiency is critical for organizations seeking to cut energy intensity, reduce operating costs, and meet surging cooling demand while improving sustainability. The company is actively working with several major clients and partners across the region, including NEOM, King Abdullah Economic City (KAEC), Saudi Tabreed, ADNOC Drilling, Enersol, and Alpha Dhabi Holdings, highlighting the strong demand for scalable, efficient cooling in extreme heat.
The Cooling-as-a-Service Model
To facilitate rapid adoption and overcome potential capital expenditure barriers, Strataphy operates on a Cooling-as-a-Service (CaaS) model. This service transforms geothermal cooling from a large upfront capital expense into a predictable operating cost. This approach allows industrial and commercial organizations to deploy Strataphy’s advanced, energy-efficient systems with minimal initial investment while immediately benefiting from reduced long-term energy consumption and enhanced operational reliability.
Investor Perspective on Core Infrastructure
Investors view Strataphy as a key enabler for the region’s broader infrastructure transformation. Mohammed Almeshekah, Founder and General Partner at Outliers VC, emphasized that efficient and scalable cooling is becoming essential for sustained growth, stating, “Strataphy’s subsurface powered approach delivers a step change in reliability and energy use.” Similarly, Shane Shin, Founding Partner at Shorooq, noted that Strataphy is fundamentally rethinking the intersection of energy, environment, and infrastructure in hot-climate economies, unlocking a new layer of sustainability and performance.
About Strataphy
Strataphy is a deep-tech company pioneering subsurface-powered cooling for large-scale infrastructure. Founded by Dr. Ammar Alali and Ahmed Alhani, Strataphy develops and operates proprietary geothermal cooling systems that significantly reduce energy consumption and cost for data centers, giga-projects, and cities. Its Cooling-as-a-Service (CaaS) model enables clients to adopt the technology with no upfront investment.
Source: PR Release
