Liquid cooling firm Submer has completed an investment round to scale adoption of its sustainable immersion cooling solution.

The investment round has raised $55.5 million so far and was led by M&G, from its £5 billion ($6.55bn) catalyst strategy designed to finance innovative intellectual property-backed businesses, primarily in North America.

Submer Cooling
– Submer

Existing investors Planet First Partners, Norrsken VC, and Mundi Ventures, participated in the round. Barclays Bank Ireland PLC acted as Submer's placement agent.

Submer said it will use the funds to support its next growth phase, capitalizing on new business opportunities, boosting customer acquisition, and supporting existing clients in their infrastructure development while adhering to environmental regulations.

All three investors are aligned with Article 9 of the European Union’s Sustainability Financial Disclosure Directive and its Green Taxonomy.

Commenting on the investment round, the global head of catalyst investments at M&G, Niranjan Sirdeshpande, said: “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.”

Founded in 2015, Submer provides a series of indoor and outdoor single-phase immersion cooling pods. Its highest-capacity tank can provide up to 360kW of cooling. The company also offers larger-scale containerized pods housing multiple tanks.

According to Submer, the investment round marks the beginning of several announcements in the pipeline, especially regarding expansion in the US and APAC regions.

In early September, Submer signed an agreement with UK colo firm Stellium Datacenters to deploy its immersion cooling solution at its data center campus in Newcastle.

Under the agreement, Submer's immersion cooling technology will be integrated into Stellium Datacenters' infrastructure.