- Submer has successfully secured a $55.5 million investment round led by M&G, focusing on sustainable immersion cooling solutions for AI factories and datacenters. - The investment comes from M&G’s £5 billion Catalyst strategy and includes participation from existing investors such as Planet First Partners and Norrsken VC. - Datacenters are under significant pressure due to rising energy consumption and water usage associated with AI applications, with projections indicating consumption could double by 2026. - Immersion cooling is presented as a sustainable solution to the challenges currently faced by traditional air and liquid cooling methods. - Submer aims to establish waterless datacenters and contribute to a more efficient, environmentally friendly datacenter industry. - The new funding will allow Submer to expand its customer base and grow its operations in key markets, particularly in the U.S. and APAC regions. - Investors involved share a commitment to sustainability, aligning with the EU’s Sustainability Financial Disclosure Directive. - M&G’s investment seeks to alleviate the energy and water demands of expanding digital infrastructure, indicating a strategic opportunity for Submer. - This funding round precedes further announcements regarding Submer’s expansion plans in international markets. - Submer is recognized for its role in shaping a sustainable, energy-efficient future in datacenter technology.

$55.5 Million USD Growth Round Fuels Submer’s Push for Greener AI Factories and Datacenters

M&G Leads Effort to Scale Adoption of Sustainable Immersion Cooling Solutions Globally

Published on
October 3, 2024

Barcelona, Spain. October 3rd, 2024 – 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 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 20261, 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 Kingdom2.

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 datacenters, enabling us to scale faster with our customers, while remaining focused on driving both growth and meaningful impact in our industry.” 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.” 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.
References https://iea.blob.core.windows.net/assets/6b2fd954-2017-408e-bf08-952fdd62118a/Electricity2024-Analysisandforecastto2026.pdf ↩︎
https://arxiv.org/abs/2304.03271 ↩︎
About Submer

Founded in 2015, Submer provides best-in-class technology, enabling datacenters 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 M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £346.1 billion of assets under management (as at 30 June 2024). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

For more information, please visit: https://global.mandg.com/
About Planet First Partners

Planet First Partners is a growth equity platform that invests in and partners with disruptive entrepreneurs to scale tech-enabled businesses that combine a purpose-driven mission, profitable growth, and a people-centric culture. As an Article 9 fund, Planet First Partners applies rigorous methodology for sustainable investing and commits to always following the highest standards and strictest criteria. Founded in 2020, Planet First Partners is made up of a highly experienced, qualified team of investment and sustainability experts focused on maximising and optimising sustainability. The team is complemented by a mission-aligned advisory board, made up of global business and political leaders.
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.
About Norrsken VC

Norrsken VC is one of Europe’s leading impact venture capital funds. It was born out of Norrsken – a non-profit impact ecosystem connecting founders with the capital, knowledge and network they need to make saving the world their business. Norrsken was founded in 2016 by Niklas Adalberth, co-founder of Klarna, with the belief that entrepreneurs building rapidly scalable businesses are the best bet to solving the hardest and biggest problems in the world. Norrsken VC operates independently, although it shares the same values and mission with the Norrsken Foundation: it wants to enable the next impact unicorn – a company that has a positive impact on 1 billion people.

PR contact:

Alexandra MacDiarmid

alexandra.macdiarmid@submer.com