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Outliers VC leads $6m seed round for Saudi deeptech startup

Strataphy, a Saudi Arabia-based deeptech startup, has secured US$6 million in seed funding led by Outliers VC, with Shorooq and PlusVC also participating.

The company develops cooling systems for industrial and commercial facilities in the Middle East and North Africa.

Founded in 2025, Strataphy said it will use the funding to enhance its technology and expand its engineering and operations teams.

The startup aims to address rising energy demand for cooling, especially in hot-climate regions, and support new deployments in large-scale projects and data centers across the region.

🔗 Source: Strataphy

🧠 Food for thought

Implications, context, and why it matters.

Strataphy geothermal tests validate efficiency, but upfront drilling and installation still slow adoption

  • Saudi Arabia-based deeptech startup Strataphy ran over 25 wellbores (drilled holes) up to 250 meters deep and 18 Thermal Response Tests (field measurements of ground heat transfer), which supports geothermal potential for large-scale cooling across the country 1.
  • The PrimeLoop system (a closed-loop geothermal cooling system that uses stable underground temperatures) hits a Coefficient of Performance (COP) above 5, more than double Heating, Ventilation and Air Conditioning (HVAC) setups 2.
  • Cooling as a Service (CaaS) shifts spend from capital expenditure to an operating cost. Strataphy handles design, drilling, installation and maintenance 2.
  • Saudi Arabia’s first industrial-scale geothermal cooling system targets commissioning before end of 2025 1.

Gulf Cooperation Council (GCC) data center growth targets 2025–2027

  • Saudi Arabia leads the Gulf Cooperation Council (GCC) data center pipeline with nearly 80% of power capacity and about 250 megawatts (MW) expected by end of 2025. Across the region, capacity could reach 3.5 gigawatts (GW) with roughly $8.5 billion in investment by 2027 3.
  • AI workloads push compute density plus cooling tech, with options including Air Assisted Liquid Cooling (airflow helps dissipate heat from liquid-cooled components) and Two Phase Liquid Immersion Cooling (servers are immersed in a dielectric fluid that boils to remove heat) 4.
  • The GCC offers cost-effective electricity for energy‑intensive AI data centers, while Saudi Arabia has a $12.1 billion data center construction plan creating openings for cooling system integrators (companies that design and assemble multi-vendor systems) 4.

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