Return to search

Cloud&Heat locks in funding

Cloud&Heat, a German provider of solutions for the cloud computing market, has raised 10 million euros in funding. ETF Partners led the round with participation from Inven Capital.


Dresden, September 10, 2018. ETF Partners (‘ETF’) 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 of the market. Not only are their data centres energy efficient, scalable and secure, but they employ a proprietary hot water cooling technology. This innovative solution greatly reduces the energy required to cool a data centre. 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 connect to district and local heating networks, without the need for additional heat pumps. In addition to saving energy costs, also carbon dioxide emissions are significantly reduced.

This year, the company has already recorded a more than 4-fold increase in sales compared to the full year 2017, supporting 1,000s 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, cooperation with 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 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 now 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.

About Cloud&Heat Technologies
Since its foundation, the mission of Cloud&Heat Technologies has been to make sustainability a driver of digital innovation. The Dresden-based company develops, builds and operates energy-efficient, scalable and secure data centres that meet the requirements of the future cloud.
Private and public cloud solutions based on OpenStack are offered both as customised solutions for SMEs, such as the company’s Datacenter in a Box (DiaB) and Datacenter Container (DCC) products, as well as in the form of technology solutions for larger IT infrastructure players. Both business areas use Cloud&Heat’s innovative hot water direct cooling, which is highly efficient but also enables the re-use of the waste heat; water at a constant temperature of 60 degrees connects directly to building or district heating systems. Thereby, Cloud&Heat builds and operates the world’s most energy- and cost-efficient data centres.

The company already received numerous awards and counts some of the world’s leading corporations from Europe, Asia, and the US among its customers. Cloud&Heat is also actively defining the future of cloud computing through its participation in a number of consortia, such as AUDITOR and SecuStack.

About ETF Partners
ETF Partners supports talented entrepreneurs and management teams with investment capital and experience. Our funds come from institutional investors, global corporations and family offices. We create value by investing in technology companies that make a difference. We call it ‘sustainability through Innovation’.

For more insight into ETF Partners’ view on Sustainability through Innovation, read our investor briefings.

About Inven Capital
Inven Capital is a venture capital fund with committed capital from CEZ Group and the European Investment Bank (“EIB”). The EIB’s financial support is backed by the European Union through the European Fund for Strategic Investments (“EFSI”). The strategy of Inven Capital is to identify opportunities for investing in innovative and growing clean energy and smart technology companies in Europe. It focuses primarily on growth investment opportunities in the later stage with a business model proven by realised earnings and with long-term growth potential. Companies in the portfolio of Inven Capital can take advantage of CEZ Group’s extensive expert knowledge, client base, and technology synergies for their further development. The portfolio of Inven Capital includes some of the most innovative clean-tech companies, such as sonnen, Sunfire, tado°, Cloud&Heat and Vulog.