Zendo Energy Secures £1.75 Million in Pre-Seed Funding to Revolutionize Data Centre Energy Management
British energy software startup Zendo Energy has raised £1.75 million in pre-seed funding to accelerate the development of its innovative AI-powered platform aimed at helping data centres reduce energy costs and carbon emissions.
The round was led by deep-tech VC firm Fly Ventures, joined by Octopus Ventures, Pact VC, and angel investors from the data centre industry.
Zendo is building what it describes as the first “Energy OS” for data centres, an advanced software platform designed to help operators navigate the volatility of energy markets and manage AI-driven workloads.
The system provides predictive analytics and flexible energy solutions, enabling data centres to forecast energy usage, secure custom tariffs, and leverage ‘stranded power’ to improve infrastructure efficiency.
Addressing Energy Challenges in the Data Centre Industry
Data centres are a critical component of global infrastructure, with a significant energy demand that’s expected to more than double by 2030.
Currently, data centres consume almost 3% of global electricity, and AI is set to account for up to 70% of their capacity by the end of the decade. This growing demand places substantial pressure on energy grids and complicates the industry’s sustainability targets.
Zendo’s CEO and Co-Founder, Jade Batstone,said, “Data centres are a lot like energy suppliers. Their main cost is energy, and their revenues are largely tied to the power capacity they sell. If they can’t manage price volatility, they risk losing margin and competitiveness.”
He added, “By reducing the cost and complexity of integrating clean energy, we’re enabling data centres to be heroes, not villains, in the energy transition.”
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Aiming to Decarbonize Computing Power
With its mission to decarbonize computing power, Zendo aims to become a crucial tool for flexible, AI-driven data centres.
Batstone, a former leader at Square and SWIFT, stated that the company’s platform is designed to support the future of computing demand, making data centres smarter, more efficient, and ready for the increasing digital transformation powered by AI.
Investors are optimistic about Zendo’s impact, with Octopus Ventures’ Kirsten Connell noting that the startup is tackling a “world-changing problem” that will only grow as AI adoption rises. Fly Ventures’ Gabriel Matuschka added that Zendo’s technology has the potential to revolutionize data centre operations, driving greener, more efficient, and profitable practices.
