Submer, a pioneer in immersion cooling technology, has successfully raised $55.5 million in its latest growth round, marking a significant step toward its mission of driving greener, more sustainable AI factories and data centers. This funding round, led by M&G, highlights the growing demand for environmentally friendly solutions in the rapidly expanding digital infrastructure industry. Alongside M&G, previous investors such as Planet First Partners and Norrsken VC renewed their support, reaffirming their commitment to Submer's vision of revolutionizing the cooling systems of hyperscale data centers.

The Need for Sustainable Data Centers

The surge in AI, big data, and other advanced computing applications has pushed data centers to consume unprecedented levels of energy and water. According to the International Energy Agency, data centers accounted for nearly 460 TWh of electricity in 2022, approximately 2% of global electricity consumption. Projections suggest this could double by 2026, surpassing the electricity consumption of individual EU nations. Additionally, AI applications are expected to demand billions of cubic meters of water by 2027. These staggering figures underscore the need for innovative cooling solutions.

Immersion Cooling: A Green Alternative

Immersion cooling, an innovative technology that submerges hardware in cooling fluids, has emerged as a sustainable solution to address the growing energy and water needs of data centers. Unlike traditional air or liquid cooling methods, immersion cooling reduces the need for water withdrawal and significantly cuts down energy consumption. Submer is at the forefront of this technology, providing scalable solutions to mitigate the environmental footprint of modern digital infrastructure.

Submer's commitment to building sustainable, waterless data centers aligns with the industry's increasing emphasis on reducing environmental impact. With this fresh injection of capital, Submer aims to expand its presence in key markets like the U.S. and the Asia-Pacific (APAC) region, enabling data centers worldwide to adopt greener cooling technologies.

Fueling Submer’s Global Expansion

This latest growth round comes at a critical time for Submer, as the company is poised to scale its operations globally. The $55.5 million investment will help the company seize new business opportunities, enhance customer acquisition, and support its clients in meeting the demands of regulatory compliance for sustainability.

Pol Valls, Submer's founder and CFO, expressed gratitude for the strong interest from investors and shared his excitement about the partnership with M&G and other like-minded investors. "With this strong backing, we are well-positioned to continue leading the immersion cooling market and meeting the growing demands of hyperscale data centers. This funding will enable us to scale faster while maintaining our focus on growth and making a meaningful impact in our industry," said Valls.

Submer’s immediate plans include expanding its reach into the U.S. and APAC regions, where the demand for efficient and sustainable cooling solutions is rapidly increasing. The company’s ability to deliver effective, low-impact cooling technology positions it as a critical player in the global market, where sustainability and regulatory compliance are becoming essential for digital infrastructure development.

Investors Backing Sustainability

The backing of M&G, Planet First Partners, and Norrsken VC underscores the growing investor demand for sustainable technologies. All three firms are committed to environmental responsibility and align with Article 9 of the European Union’s Sustainability Financial Disclosure Regulation (SFDR), which highlights companies with a positive environmental impact. This alignment has helped channel investments into Submer, enabling the company to further its mission.

M&G's investment was made through its Catalyst strategy, a £5 billion initiative aimed at addressing global environmental and social challenges. As part of its commitment to sustainability, M&G has focused on supporting technologies like Submer's, which have the potential to alleviate the energy and water burdens associated with AI and digital infrastructure.

Niranjan Sirdeshpande, Global Head of Catalyst Investments at M&G, stated: "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 support Submer as they scale their products and services globally."

Planet First Partners and Norrsken VC are also recognized for their focus on impact investing, supporting ventures that address the UN’s Sustainable Development Goals (SDGs). Both firms reaffirmed their belief in Submer’s mission to mitigate the environmental challenges posed by modern data centers.

A Greener Future for Data Centers

As the digital economy continues to grow, the energy and water demands of data centers will only increase. Submer’s innovative immersion cooling technology offers a sustainable and scalable solution to these challenges. The company's commitment to reducing the environmental footprint of data centers positions it as a leader in the industry.

With the support of investors focused on sustainability and the resources provided by this latest funding round, Submer is poised to make a significant impact on the future of digital infrastructure. Its global expansion into key markets and continued innovation in immersion cooling technologies will help shape a more sustainable, energy-efficient future for data centers worldwide.

Submer’s successful $55.5 million growth round, led by M&G, sets the stage for the company’s next phase of expansion and innovation. As data centers face increasing pressure to become more energy-efficient and sustainable, Submer’s immersion cooling technology provides a vital solution. With the support of leading investors, Submer is well-positioned to continue leading the charge toward a greener future for AI factories and data centers.