$55.5 Million USD Growth Round Fuels Submer’s Push for Greener AI Factories and Data Centers
M&G Leads Effort to Scale Adoption of Sustainable Immersion Cooling Solutions Globally
Submer is pleased to announce a successful investment round of $55.5 million USD, 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. Existing investors, Planet First Partners and Norrsken VC who 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) and demand being driven by innovative applications such as AI, data centers are consuming vast amounts of energy and water. The International Energy Agency reports that data centers 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 data centers and lead the way to a greener future, to make a difference and contribute to a fairer, more efficient, planet-friendly data center industrial 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.”
A long History: The Partnership between Submer and Mundi Ventures
Submer and Mundi Ventures were both founded in 2015—a technology company and a venture capital fund with ideas conceived nearly a decade ago. In 2018, the two entities crossed paths at the South Summit, a conference in its early days. At that time, Submer’s product was only an initial prototype, not yet ready for the market. Meanwhile, Mundi Ventures was a newly established venture capital fund, with Alma Mundi Innvierte as the first of its kind in Spain, aimed at boosting the Spanish economy by supporting local talent. Recognising a lack of resources for entrepreneurs in Spain, who often had to relocate to the United States or other countries, Alma Mundi Innvierte was created to bridge this gap.
Back then, Spain's investment landscape was heavily focused on real estate, with limited support for entrepreneurship. Mundi Ventures set out to change this, adding a commercial value layer to its funding by helping founders connect with the corporate world. Through initiatives like Club Mundi, the firm built a network of 750 senior Spanish executives abroad, including top leaders from companies like Hewlett Packard, Pepsico, and Radisson.
In 2018, Mundi Ventures made an early investment in Submer, supporting the company’s growth and helping it establish strategic partnerships. This effort led to the closing of a Series A round in December 2021, which brought in impact funds PFP and Norrsken VC. Mundi Ventures continues to support Submer today, serving on its board and advising on key strategic decisions.
Mundi Ventures’ Commitment to Deep Tech and Climate Tech
Submer is one of several Deep Tech and Climate Tech companies that Mundi Ventures has supported. These two areas are core priorities for the firm. Rather than focusing on specific industries, Mundi Ventures develops funds around themes often overlooked by the market and builds investment theses accordingly.
With a portfolio of over 70 companies, Mundi Ventures has gained recognition for its impact investments across Europe and the United States. The firm has made significant strides in sectors such as Climate Tech, with companies like Descartes in Europe, Raincoat in Latin America, and Floodmapp in Australia. Additionally, its Deep Tech investments include ESG-focused firms like New York-based Clarity.
About Submer
Founded in 2015, Submer provides best-in-class technology, enabling data centers around the world to leverage the power of immersion cooling for HPC, hyperscale, data centers, Edge, AI, DL, and blockchain applications. Submer is headquartered in Barcelona, Spain and operates a Gigafactory in Houston, Texas. For more information, visit https://submer.com/.
About Mundi Ventures
Founded in 2015, Mundi Ventures is a Venture Capital firm headquartered in Madrid with €500 million in assets under management. Mundi Ventures and its team have supported over 70 tech companies worldwide, with a focus on Insurance, Retail, and Deep Tech. The firm acts as a platform for thematic investments, strategically targeting emerging trends across various industries. Mundi Ventures operates with a highly international team, consisting of 25 employees from 17 different nationalities, bringing a diverse global perspective to its investment approach. For more information, visit https://www.mundiventures.com/
References
[2] https://arxiv.org/abs/2304.03271
