HexSeed secures funding for AI data centre cooling
UK startup HexSeed Technology has successfully raised over €700k (£600k) in early-stage funding1. This investment, led by Carbon13 with participation from Net Zero Technology Centre and Vento Ventures, along with a provisional Innovate UK Partnership Grant, will advance its diamond coating technology designed to cool artificial intelligence (AI) data centres and enhance energy efficiency. This marks a significant step towards addressing the escalating energy demands of AI infrastructure.
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The growing energy challenge of AI data centres
The rapid expansion of AI is placing unprecedented strain on energy grids, with data centres becoming major consumers of electricity. This surge in demand necessitates innovative approaches to power management and cooling.
The rising demand from AI workloads
AI workloads require immense computational power, leading to a substantial increase in electricity consumption by data centres. The International Energy Agency (IEA) forecasts global electricity demand from data centres to reach 945 TWh by 2030, largely driven by AI. In the UK, data centres currently consume around 2.5% of the nation's electricity, a figure projected to increase four-fold by 2030. This growth puts significant pressure on the UK's grid capacity. More recent research suggests that data centres in the UK and US are consuming around 6% of electricity, with the UK government having estimated 2.5% in early 2025.
The problem of heat and energy waste
A significant proportion of the energy consumed by data centres is lost as heat during power conversion. Mark Tandy, CEO and co-founder of HexSeed, stated that "Data centres are on track to consume a significant share of UK grid capacity within the decade, and a large proportion of that energy is lost as heat in power conversion". This energy waste not only impacts operational costs but also contributes to the overall carbon footprint of digital infrastructure. Efficient thermal management is crucial for the performance and longevity of semiconductors in these high-density computing environments.
HexSeed's innovative diamond coating technology
HexSeed Technology is developing a novel solution to tackle the heat problem in AI data centres: advanced diamond coatings.
How diamond coatings enhance thermal management
Diamond is renowned as the best-known thermal conductor, capable of dissipating heat exceptionally well. HexSeed's innovation lies in its ability to apply these diamond coatings directly to semiconductor devices. This process pulls heat away from the active regions of components, allowing them to operate more efficiently.
What is HexSeed's diamond coating technology?
HexSeed's technology involves a low-carbon, low-temperature microwave plasma process that grows diamond coatings directly onto Gallium nitride (GaN) devices. This coating efficiently pulls heat away from the active parts of the semiconductor, enabling the devices to run harder, last longer, and use less energy, thereby improving overall data centre energy efficiency.
The role of Gallium nitride devices
HexSeed's technology specifically targets Gallium nitride (GaN) devices. GaN transistors are becoming increasingly important as they convert power far more efficiently than traditional silicon devices. However, these GaN components can run extremely hot, and this thermal bottleneck is a primary barrier to them reaching their full performance potential. By applying diamond coatings, HexSeed aims to overcome this limitation, enhancing the performance and reliability of these next-generation semiconductors.
Collaboration with the University of Bristol
HexSeed is developing its technology in close collaboration with researchers from the University of Bristol. This partnership leverages expertise in diamond materials and semiconductor devices to refine the low-temperature microwave plasma process, ensuring the diamond coatings can be applied directly to finished GaN devices without causing damage.
Benefits for UK data centres and energy efficiency
HexSeed's technology offers multiple advantages for data centres and the broader energy landscape.
Improving performance and longevity
By effectively managing heat, HexSeed's diamond coatings allow GaN devices to run harder and last longer. This not only boosts the performance of AI-optimised facilities but also extends the lifespan of expensive hardware, reducing the need for frequent replacements and lowering operational costs.
Contributing to UK grid stability
The reduction in energy waste from more efficient cooling directly contributes to alleviating the strain on the UK's electricity grid. As data centres consume a growing share of National Grid capacity, innovations that improve energy efficiency are vital for maintaining stability and supporting the UK's digital infrastructure growth.
A step towards a low-carbon future
HexSeed's low-carbon process for applying diamond coatings aligns with broader goals of reducing carbon emissions and moving towards a Net-Zero economy. By making AI data centres more energy-efficient, the technology supports the transition to a more sustainable and abundant energy future.
Driving innovation in UK tech
HexSeed's journey highlights the dynamic nature of the UK's technology sector and its commitment to addressing global challenges.
HexSeed's funding and key investors
The early-stage funding round, totalling over €700k (£600k), was led by Carbon13, with significant participation from the Net Zero Technology Centre and Vento Ventures. This investment, coupled with a provisional Innovate UK Partnership Grant, underscores confidence in HexSeed's potential to deliver an impactful thermal management solution. The company was founded in late 2025 by Mark Tandy, Dr Leonardo Santoni, and Dr Michael Glerum.
"Data centres are on track to consume a significant share of UK grid capacity within the decade, and a large proportion of that energy is lost as heat in power conversion. This funding will allow us to take our low-temperature diamond coating technology which we are developing from laboratory demonstration to working GaN devices." — Mark Tandy, CEO and co-founder of HexSeed
The broader impact of UK tech startups
HexSeed's success reflects the UK's vibrant startup ecosystem, which is actively developing solutions for critical global issues like energy efficiency and climate change. Such innovations are crucial for strengthening the UK's position as a leader in deep tech and for building a more resilient and sustainable energy future.
At Fuse Energy, we champion innovations that contribute to a future with "power to play with." While we focus on delivering abundant, clean energy to homes, advancements like HexSeed's in commercial energy efficiency are vital components of a robust, future-proof energy system for everyone. Managing your home's energy bills should be clear and easy to understand. Fuse Energy focuses on transparent pricing, so you can see exactly what you're paying without unnecessary complexity. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.
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Disclaimer
For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.