Saudi Arabia’s Strataphy Secures $6M Seed Round
Khobar, Saudi Arabia — Strataphy, a Saudi deep-tech company redefining how AI and industrial infrastructure are cooled, announced that it has raised $6 million in Seed funding, led by Outliers VC and Shorooq, with participation from PlusVC (+VC).
Strataphy specializes in delivering geothermal-powered cooling solutions for data centers, industrial facilities, commercial complexes, and giga-projects, leveraging its proprietary PrimeLoop™ subsurface technology. The platform provides a fundamentally new way to cool large-scale infrastructure by tapping into stable underground thermal energy, enabling drastically lower power usage, reduced operational costs, and improved efficiency—especially in high-temperature regions.
The company will deploy the new capital to advance its technology stack, expand operations, and grow its engineering and deployment teams, supporting large-scale rollouts across Saudi Arabia, the wider MENA region, and global markets.
Cooling has emerged as one of the most critical constraints in hyperscale and industrial expansion, consuming up to 50% of total electricity use in hot climates. 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 accounting for $13 billion.
Dr. Ammar Alali, co-founder and CEO of Strataphy, emphasized the scale of the challenge, stating:
"AI and industrial infrastructure are scaling faster than the systems that keep them cool and efficient..."
He added that Strataphy is building the backbone for next-generation cooling that is scalable, reliable, and cost-efficient, positioning the company to meet surging regional and global demand.
Dr. Alali, who holds a PhD from MIT in Earth Sciences and Energy Systems, co-founded Strataphy with Ahmed Alhani, following more than 15 years of joint experience at Saudi Aramco and other ventures in subsurface exploration, geothermal development, and energy optimization. This background underpins PrimeLoop™, Strataphy’s proprietary subsurface cooling technology engineered specifically for high-temperature economies.
Strataphy’s client and partner ecosystem includes NEOM, King Abdullah Economic City, Saudi Tabreed, Enersol, ADNOC Drilling, and Alpha Dhabi Holdings, reflecting the rising demand for efficient and scalable cooling. With its Cooling-as-a-Service model, the company transforms geothermal cooling from a capital-heavy investment into a predictable operating expense — enabling organizations to deploy advanced cooling systems with minimal upfront cost.
Strataphy has successfully demonstrated PrimeLoop™ in commercial environments, documenting up to 49% reductions in electricity costs compared to traditional cooling technologies.
Commenting on the investment, Mohammed Almeshekah, Founder and General Partner at Outliers VC, said:
"Cooling remains one of the most overlooked opportunities in the region’s broader infrastructure transformation..."
