Strataphy, a Saudi deeptech startup developing advanced geothermal cooling solutions, raised USD 6 million in a seed round led by Outliers VC, with participation from Shorooq Partners and PlusVC. The company plans to use the funding to scale its engineering and operations teams and accelerate deployments across Saudi Arabia, the UAE and other high-temperature markets.
Tackling One of the Region’s Biggest Infrastructure Challenges
Cooling has become one of the largest constraints on industrial growth, hyperscale data centre expansion and AI infrastructure. In hot-climate regions, cooling already accounts for nearly half of total electricity consumption. The Middle East alone represents a cooling market worth more than USD 120 billion annually, including USD 13 billion in Saudi Arabia.
What does Strataphy do?
Strataphy addresses this challenge with PrimeLoop, its proprietary subsurface cooling system designed specifically for high-temperature regions. By tapping stable geothermal energy deep underground, the technology reduces power use, lowers operating costs and supports the rapid scaling of energy-intensive facilities such as:
- Hyperscale data centres
- Gigaproject developments
- Industrial complexes
- High-demand commercial environments
A New Approach to Sustainable Cooling
PrimeLoop offers a full-stack geothermal cooling model that moves beyond conventional systems originally designed for heating in colder climates. Strataphy’s Cooling-as-a-Service model converts cooling from a capital-heavy investment into a predictable operating cost. This shift enables organisations to adopt advanced cooling infrastructure with minimal upfront expense while gaining long-term savings and reliability.
The company has already demonstrated PrimeLoop in live commercial settings, recording electricity cost reductions of up to 49 percent compared to traditional cooling systems. Demand is now rising across the region, reflected in its client base, which includes NEOM, King Abdullah Economic City, Saudi Tabreed, Enersol, ADNOC Drilling and Alpha Dhabi Holdings.
Building the Backbone for AI and Industrial Expansion
Co-founders Dr. Ammar Alali and Ahmed Alhani bring more than 15 years of joint experience, including roles at Saudi Aramco and projects in subsurface exploration, geothermal systems and energy optimisation. Dr. Alali holds a PhD in Earth Sciences and Energy Systems from MIT, shaping the scientific foundation behind PrimeLoop’s design.
According to Dr. Alali, cooling has become the largest driver of new hardware spending in AI infrastructure since 2022. As AI models and industrial operations grow, efficient and scalable cooling systems are becoming a critical enabler of progress.
Investors share this view. Outliers VC highlighted the overlooked potential of cooling within regional infrastructure transformation. Shorooq Partners described Strataphy’s work as a fundamental rethinking of how energy, environment and infrastructure interact in hot-climate economies.
Bottom Line
With its USD 6 million seed round, Strataphy is positioned to scale its geothermal cooling technology across the Middle East, supporting the rapid rise of AI, hyperscale data centres and industrial development.