Barcelona-based Submer has been at the forefront of developing immersion cooling solutions that address the increasing energy demands of modern datacenters. Recently, the company raised $55.5 million in a growth funding round, signaling a vital step in its strategy to tackle the inefficiencies of traditional cooling methods. As data consumption and AI technologies continue to surge, finding sustainable solutions like Submer’s immersion cooling becomes increasingly important. The funds raised will support Submer’s expansion efforts, allowing it to address the growing market needs effectively and sustainably.
In recent years, the demand for efficient datacenter cooling has surged due to the exponential growth of data and AI technologies. Traditional methods are struggling to keep up with the energy and water requirements. Submer, founded in 2015, entered the market with a clear mission to innovate in cooling technology. The company’s solutions aim to reduce the environmental impact, an approach that has garnered significant attention and investment. The new funding further establishes Submer as a significant player in the sustainable technology sector.
What Drives Submer’s Innovation?
Submer’s focus is on mitigating the environmental footprint of datacenters. The company addresses the challenge posed by rising Thermal Design Power (TDP) in chips and the water-intensive nature of AI applications. By 2026, electricity consumption by datacenters could double, and AI demands might require billions of cubic meters of water. Submer’s immersion cooling technology offers a viable solution for creating efficient, waterless datacenters. This approach aligns with a broader industry shift towards eco-friendly practices, marking a significant advancement in datacenter sustainability.
How Will the Funding Be Utilized?
Submer plans to leverage the new capital to expand its business globally, focusing on key markets such as the US and the APAC region. The funds will enable the company to enhance its customer acquisition strategies and support infrastructure needs while adhering to environmental regulations. The investment reflects a growing investor confidence in Submer’s ability to lead the market with its innovative technology.
“We are grateful for the strong interest from investors and are thrilled to partner with the ones who align with our sustainability values,” stated Pol Valls, founder & CFO at Submer.
Submer’s investors, including M&G Catalyst, Planet First Partners, and Norrsken VC, express strong support for the company’s commitment to sustainability. These investors comply with Article 9 of the EU’s Sustainability Financial Disclosure Directive (SFDR), ensuring their investments promote positive environmental changes. Their backing is a testament to Submer’s potential to impact the digital infrastructure sector positively.
“As the global demand for AI and data capacity accelerates, we see Submer’s technology as a critical solution,” noted Niranjan Sirdeshpande, Global Head of Catalyst Investments at M&G.
Submer’s trajectory in the industry highlights a broader trend where technology and sustainability intersect. This funding not only positions Submer for growth but also emphasizes the increasing necessity for eco-friendly solutions in technology. The company’s immersion cooling technology is set to play a crucial role in meeting the future challenges of data management sustainably.
