Polar investment from H.I.G Capital

The European owner and operator of HPC data center, receives an equity investment from H.I.G Capital and historical investor LIAN Group in a deal worth up to €500 million

Growth capital 2024, October

Consulting & IT services

“We founded Polar because we envisaged that demand and wanted to offer a solution that was sustainable, efficient, and scalable; we wanted to develop AI infrastructure that allowed new technologies to flourish. AI technologies are becoming ever more sophisticated, and yet they are requiring more and more computing power. We must meet that demand; AI has the potential to transform every sector, and there must not be any constraint on its development. I’m looking forward to working with H.I.G.; with their investment and experience, I have no doubt that Polar’s growth will accelerate and pave the way for innovative HPC technologies across Europe. This is only the beginning.”

Nessim-Sariel Gaon, co-founder of Polar

Polar develops, owns, and operates data center infrastructure targeting high-performance computing applications, including AI.

The Company’s first data center in Norway will provide up to 48MW of capacity once fully operational, and will be powered using 100% renewable, hydroelectric power. It will offer its customers best-in-class Power Usage Effectiveness, given the naturally colder Norwegian climate and modular design architecture. 100% of its initial capacity has already been presold. The Company is actively developing several other data center projects across Europe.

Fiorenzo Manganiello and Nessim-Sariel Gaon launched Polar in 2021 after identifying the rapidly growing demand for AI infrastructure. Anticipated debt financing of €350 million will bring the total value of the transaction up to €500 million, with H.I.G. Capital investing up to €150 million and gaining a majority stake in the Company. Manganiello and Gaon are excited to see what the future holds for Polar following this capital increase, and look forward to working hand-in-hand with H.I.G. Capital to further accelerate Polar's growth.

The Polar management team has extensive experience in developing and operating data center infrastructure, and H.I.G.’s investment will enable the Company to deliver its near-term pipeline. The Company will continue to benefit from the knowledge and expertise of its Co-Founders Manganiello and Gaon, who will retain a minority stake in the Company through their investment firm LIAN Group going forward.