Submer is pleased to announce a successful investment round of $55.5 million USD thus far, led by M&G, a leading investment company with £346.1 billion assets under management as of June of 2024. The investment comes from its £5 billion purpose-led Catalyst strategy, with Barclays Bank Ireland PLC acting as the placement agent to Submer. Among existing investors, Planet First Partners and Norrsken VC reinvested alongside M&G, and together with Mundi Ventures, reaffirmed their support as strong backers of Submer’s strong financial position and growth potential.
In the age of rising chip Thermal Design Power (TDP) with demand being driven by innovative applications such as AI, datacenters are consuming vast amounts of energy and water. The International Energy Agency reports that datacenters consumed 460TWh in 2022 – almost 2% of global electricity consumption – and this figure is projected to possibly double by 2026 [1], surpassing the total electricity consumption of any EU country. Estimates also indicate that the global AI demand may even require 4.2 to 6.6 billion cubic meters of water withdrawal in 2027, which would be 4 to 6 times the total annual withdrawal of Denmark and half of that of the United Kingdom[2].
With traditional air-cooling and other liquid cooling methods becoming increasingly inadequate, immersion cooling emerges as the sustainable and scalable solution to help solve these key challenges.
Submer is on a mission to build sustainable waterless datacenters and lead the way to a greener future, to make a difference and contribute to a fairer, more efficient, planet-friendly datacenter industry landscape.
Fueling Growth and Global Expansion
Now at a pivotal scale-up stage, this new investment ushers Submer into its next phase of growth. The funds will enable the company to capitalize on new business opportunities, boost customer acquisition, and support clients in their growing infrastructure needs while complying with environmental regulations.
Submer has already outlined plans for global expansion, with an immediate focus on increasing its presence in key markets such as the U.S. and APAC regions.
“We are grateful for the strong interest from investors and are thrilled to partner with the ones who align with our sustainability values. With this strong backing, we are very well positioned to continue to lead the liquid immersion cooling market and meet the growing demands of hyperscale data centers, enabling us to scale faster with our customers, while remaining focused on driving both growth and meaningful impact in our industry,” said Pol Valls, Founder & CFO at Submer.
Investors Committed to Building a Sustainable Future
All 3 investors – M&G Catalyst, Planet First Partners, and Norrsken VC – share Submer’s commitment to sustainability and environmental responsibility. Their support not only accelerates the company’s growth but also aligns with the growing demand for greener solutions in the tech industry. These investors are aligned with Article 9 of the European Union’s Sustainability Financial Disclosure Directive (SFDR) and its Green Taxonomy. Article 9 defines which companies have a positive impact, which helps the market and investors funnel their investments towards sustainable options.
M&G’s investment was made by Catalyst, the firm’s £5 billion purpose-led flexible private assets strategy, which invests in innovative solutions to some of the world’s biggest environmental and social challenges on behalf of the £126 billion Prudential With-Profits Fund and its circa 5 million customers.
Global Head of Catalyst Investments at M&G, Niranjan Sirdeshpande, says: “As the global demand for AI and data capacity accelerates, we see Submer’s technology as a critical solution to alleviate the intensive energy and water requirements of digital infrastructure. We are excited to be supporting the company at this important time as they scale their products and services globally.”
Similarly, Article 9 fund Planet First Partners, and Swedish impact investment firm Norrsken VC (the investment arm of the non-profit Norrsken Foundation) and Tim Reynolds, the retired co-founder of Jane Street Capital are impact-focused investors, known for their commitment to backing technologies that promote the UN’s Sustainable Development Goals (SDGs), particularly in the areas of financial inclusion and environmental sustainability.
“Planet First Partners is pleased to welcome M&G and to renew its commitment to Submer on this latest funding round alongside Norrsken. We believe that the sustainability of datacentres is of paramount important for the growth of the global economy. Submer is uniquely positioned to mitigate the digital industry’s challenges for cooling new and more powerful processors, and to mitigate its fast-growing footprint, securing sustainability credentials and social license to operate with strong ROI,” said Frédéric de Mévius, Executive Chairman at Planet First Partners
This investment marks the beginning of several key announcements in Submer’s pipeline, particularly regarding its expansion in the US and APAC region. As Submer continues to innovate and expand, the company is set to play a crucial role in shaping a more sustainable, energy-efficient future for datacenters worldwide.
