Strataphy and Saudi Tabreed Forge Groundbreaking Partnership: Pioneering Geothermal Cooling for Saudi Arabia's AI and Digital Infrastructure Boom

The recent announcement from Stratatphy marks a significant step in sustainable infrastructure development in Saudi Arabia. At the Public Investment Fund (PIF) Private Sector Forum held February 9-10, 2026, in Riyadh, Strataphy signed a strategic agreement with Saudi Tabreed District Cooling Company, a key player backed by the PIF.

This partnership integrates Strataphy's innovative PrimeLoop geothermal cooling technology with Saudi Tabreed's established district cooling platforms. The goal is to address the escalating cooling demands driven by Saudi Arabia's massive buildup of AI and digital infrastructure, including over 3 GW of planned data center capacity.

 The Cooling Crisis in the Age of AI

Saudi Arabia's ambitious Vision 2030 and beyond includes transforming the Kingdom into a global hub for artificial intelligence, data centers, and advanced digital infrastructure. However, as compute power scales exponentially, cooling emerges as the primary bottleneck. Traditional air-cooled or conventional chiller systems consume enormous electricity and water—resources under strain in a hot, arid climate.

Data centers alone can account for up to 40% of total energy use dedicated to cooling. In regions like Saudi Arabia, where ambient temperatures often exceed 40°C (104°F), efficiency drops further, driving up operational costs and carbon emissions. Water scarcity adds another layer of urgency, as many cooling towers evaporate millions of liters daily.

The agreement highlights this: cooling is "quickly becoming the defining constraint" for AI infrastructure. A new model is needed—one that's efficient, scalable, sustainable, and low on water use.

What is PrimeLoop Geothermal Cooling?

Stratatphy (Strataphy), a Saudi-based deep-tech startup founded to tackle cooling in high-temperature environments, developed PrimeLoop, a proprietary subsurface technology. Unlike traditional geothermal systems (often designed for heating in colder climates), PrimeLoop is engineered for cooling-dominant regions.

PrimeLoop operates as a closed-loop system using the ground as a thermal exchange medium. Heat extracted from buildings or facilities is transferred deep underground via circulation, leveraging stable subsurface temperatures. The system features:

- No water consumption in the cooling process (closed-loop surface circulation avoids evaporation).

- 40-50% reduction in electricity use compared to conventional systems.

- Hybrid architecture combining geothermal principles with advanced heat exchange.

- Cooling as a Service (CaaS) model—no upfront capital investment for clients; predictable operating costs.

Recent demonstrations show up to 49% electricity cost savings in commercial settings. Strataphy has completed drilling and testing in Saudi Arabia, with deployments planned for hospitals, industrial sites, and mega-projects like NEOM and King Abdullah Economic City (KAEC).

Saudi Tabreed: The District Cooling Powerhouse

Saudi Tabreed, in which the PIF holds a significant stake (acquired 30% in 2023), leads district cooling in the Kingdom. Operating under Build-Operate-Own/Transfer models, it delivers chilled water to large-scale developments, including airports, government buildings, and urban mega-projects.

With hundreds of thousands of tons of refrigeration capacity, Saudi Tabreed provides reliable, centralized cooling that reduces individual building energy use by up to 50% versus traditional AC. Backed by PIF's resources, it aligns with national goals for energy efficiency and sustainability.

The Power of the Partnership

By combining PrimeLoop with Saudi Tabreed's district-scale platforms, the partners aim to create a utility-scale solution for low-carbon, high-efficiency cooling. This hybrid approach integrates geothermal subsurface exchange into existing or new district networks, delivering:

- Significantly reduced water use critical in water-stressed Saudi Arabia.

- Lower carbon footprint through minimized electricity demand.

- Scalability for data centers, AI facilities, industrial parks, and urban developments.

The announcement emphasizes trust and forward-looking collaboration: "This is only the beginning." Signed at the high-profile PIF forum, it underscores government support for innovative energy transition technologies.

This aligns with Strataphy's momentum: recent MoUs with Baker Hughes for equipment, evaluations at KAEC, and $6 million seed funding in 2025 to accelerate deployments.

Broader Implications for Saudi Arabia and Beyond

This deal supports Saudi Arabia's Energy Transition and Net Zero ambitions by decarbonizing cooling—a major energy consumer. For the AI boom, it ensures sustainable growth without compromising reliability.

Geothermal cooling could extend to other MENA regions with similar climates. Globally, as AI drives data center expansion, innovations like PrimeLoop offer a path to greener infrastructure.

In summary, the Strataphy-Saudi Tabreed agreement is more than a commercial pact—it's a blueprint for next-generation cooling in a digital, high-heat world. By harnessing the earth's stable subsurface, it promises efficient, low-impact solutions for the Kingdom's futuristic ambitions.

This development positions geothermal cooling as a key enabler in the intersection of AI growth, sustainability, and infrastructure resilience in Saudi Arabia. Stay tuned for updates on project rollouts and performance metrics from this exciting collaboration. 

Source: Strataphy