ETF invests in Cloud&Heat


ETF Partners (‘ETF’) has led a €10 Million investment round into Cloud&Heat Technologies GmbH, a German company whose sustainable, scalable and secure solutions serve the cloud computing market.

Dresden, September 10th, 2018. ETF Partners (‘ETF’) has led a €10 Million investment round into Cloud&Heat Technologies GmbH, a German company whose sustainable, scalable and secure solutions serve the cloud computing market. Cloud&Heat has developed unique technologies that enable customers to make the most efficient use of virtual servers, and to capture and use the waste heat emitted to lower the overall energy consumption. Cloud&Heat’s growth has been powered by sales to leading utilities, large corporations and next generation service providers, such as those in the Internet of Things’ (“IoT”) space. The capital will be used to support international expansion, particularly in Asia and the US, and to develop further Cloud&Heat’s unique solutions. In addition to the new investment of ETF Partners, Inven Capital, Sicav, a.s. (‘Inven Capital’), an existing investor, invested in this round.

The global data centre market continues to grow rapidly, and energy consumption is increasing, due to the huge volumes of data now being created, stored and processed. The demand for distributed energy-efficient computing power, to support the growth of the IoT and other applications, continues to accelerate and is widely regarded as one of the major trends driving the future of computing.

Cloud&Heat is well positioned to take advantage of such a shift in the market. Not only are their data centres energy efficient, scalable and secure, but they employ a proprietary water cooling technology. This innovative solution greatly reduces the energy required to cool a data centre, resulting in a much lower carbon footprint. Moreover, it allows the waste heat from the data centres to be used at a constant temperature level of 60 degrees to heat buildings, or to serve district and local heating networks, without the need for additional heat pumps.

This year, the company has already recorded a more than 4-fold increase in sales compared to the full year 2017, supporting thousands of servers deployed around the world. In particular, the demand for containerised, mobile data centres has increased rapidly in the last 12 months, with buyers and operating orders coming from Europe and Asia. This success is made possible by an 80-person strong international team of experts, as well as important partnerships with leading manufacturers and distributors. These include Foxconn subsidiary TradeDX, which ensures serial production of the data centre containers, STULZ, and the sales partner for Asia, Inabata.

Arne Morteani, Partner at ETF Partners, said: “The data centre market has been one of the fastest growing industries and is changing fast as AI, Blockchain, IoT and other compute-intensive applications require a departure from traditional centralised data centres. The Cloud&Heat team recognized this early on and developed an innovative, sustainable solution that is in great demand worldwide.”

“The development of Cloud&Heat since our first investment in May last year is impressive. The former start-up has become a major global player in the market for energy-efficient data centres. Therefore it was not a question for us whether we would also participate in this new financing round.” says Petr Míkovec, Managing Director of Inven Capital.

“I thank ETF and Inven for the trust they have placed in us, and for sharing our vision of a green digital future. With the new capital, we will achieve our goals even faster. In particular, after success in Scandinavia and Asia, we will now be able to address other key markets such as the USA.” says Nicolas Röhrs, CEO of Cloud&Heat.