Karman Industries Raises $20M for SpaceX-Inspired Data Center Cooling Tech - KRMN

Karman Industries, a Signal Hill startup, raised $20 million to develop water-free data center cooling systems using SpaceX-derived rocket engine technology, aiming to reduce power use and space requirements by up to 80%. The company plans to begin manufacturing compressors in Long Beach by late 2026, with customer deliveries starting in summer 2026. The system uses high-speed compressors spinning at 30,000 rpm—nearly 10 times faster than traditional models—and liquid carbon dioxide as refrigerant, eliminating the need for water. This innovation addresses rising energy demands from AI-driven chip density, where cooling accounts for up to 40% of data center electricity use. With U.S. data centers projected to consume 8% of national electricity by 2030, water scarcity and infrastructure strain are key concerns. Karman’s technology could challenge leaders like Trane Technologies and Schneider Electric in the $25 billion market expected by 2032. Backed by investors including Riot Venture and former Intel CEO Pat Gelsinger, Karman has raised over $30 million total.