Submer Secures $55.5M for Sustainable AI Data Center Cooling Solutions

Submer Raises $55.5M in Series C Funding

Submer, a cooling specialist firm, has successfully secured $55.5 million in a Series C funding round led by M&G, with participation from existing investors Planet First Partners, Norrsken VC, and new investor Mundi Ventures 1

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. This significant investment aims to scale Submer's sustainable liquid cooling solutions for data centers, addressing the growing challenges posed by the artificial intelligence revolution.

The Growing Challenge of Data Center Cooling

As the demand for AI compute power continues to surge, traditional air-cooling and other liquid-cooling methods are becoming increasingly problematic due to inefficiencies in design and energy use. The International Energy Agency reports that data centers consumed 460 terawatt-hours in 2022, accounting for almost 2% of global electricity consumption, with projections indicating this figure could double by 2026 1

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Submer's Innovative Cooling Solution

Submer's approach involves building waterless data centers using a proprietary fluid called SmartCoolant. This non-toxic cooling fluid, which the company refers to as its "Goldilocks solution," offers several advantages:

1. High performance across a range of temperatures
2. Safe handling
3. Stability for infrequent coolant changes
4. Biodegradability

The company's immersion cooling technology completely submerges servers in SmartCoolant or other liquid solutions, providing a more sustainable alternative to traditional cooling methods 1

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Addressing Water Consumption Concerns

Water consumption is another critical issue in the AI industry. Estimates suggest that global AI demand may require up to 6.6 billion cubic meters of water by 2027, equivalent to 4-6 times the annual water usage of Denmark or half that of the United Kingdom 1

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. Submer's waterless data center solution aims to mitigate this growing concern.

Expansion Plans and Industry Impact

With the new funding, Submer is poised for its next phase of global expansion. The company plans to:

1. Boost business opportunities
2. Reach new customers
3. Support clients with cooling infrastructure needs
4. Focus on outreach in the United States and Asia-Pacific region

Pol Valls, founder and chief financial officer of Submer, expressed confidence in the company's position to lead the liquid immersion cooling market and meet the growing demands of hyperscale data centers 1

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Flexibility in Cooling Solutions

While Submer promotes its proprietary SmartCoolant, the company also offers access to other immersion fluids from industry giants such as Castrol Ltd., Shell plc, and ExxonMobil Corp., depending on specific project and performance requirements 1

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. This flexibility allows Submer to cater to a wide range of client needs in the rapidly evolving data center cooling market.

As the AI revolution continues to drive unprecedented demand for computing power, Submer's innovative cooling solutions position the company at the forefront of addressing the critical challenges of energy efficiency and sustainability in the tech industry.