October 3, 2024
Growing demand for data centers, particularly due to increasing AI workloads, has made efficient cooling solutions essential. Traditional methods like air and water are struggling to keep up, pushing companies like Barcelona-based Submer to innovate. The company recently secured $55.5 million at a $500 million valuation, introducing a new approach: immersing entire server racks in a non-conductive, biodegradable coolant that co-founder Pol Valls compares to "amniotic fluid”. This method not only cools efficiently, but can also be used to heat buildings or other facilities.
Large entities have shown interest in Submer's technology, including a leading provider of cloud infrastructure, telecommunications companies like Telefonica, multinational corporations like ExxonMobil, and government organizations like the European Commission. Valls, who co-founded Submer with CTO Daniel Pope, attributes the company's success to alliances with major market players including Dell, Supermicro and Intel, although he is mum on individual customers. The latest funding round, led by M&G and including participation from Planet First Partners, Norrsken VC and Mundi Ventures, will enable Submer to expand its business.
In the coming years, the demand for data centers, which currently consume large amounts of energy, is expected to increase further. According to the International Energy Agency, data centers consumed 460 TWh in 2022, representing approximately 1-2% of total global energy consumption. This figure is expected to double by 2026. Additionally, a May 2023 Goldman Sachs study highlighted the energy-intensive nature of AI, revealing that ChatGPT searches require ten times more electricity than Google searches.
Submer's immersion cooling solution addresses both the technological and environmental challenges faced by data centers, improving server longevity while eliminating dust, noise and particles. Other companies like Icetope in the UK, LiquidStack in Texas, and Green Revolution Cooling are exploring liquid cooling solutions, but Submer stands out with its financial backing and market position.
The company is currently focused on expanding its customer base and partnerships, particularly following the recent appointment of CEO Patrick Smets, who brings a wealth of corporate experience to help drive the business forward. A new chapter in Submer's growth began when Smets joined the company as COO in August 2023 and took over as CEO in January 2024.
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