British energy software startup Zendo Energy has raised £1.75 million in pre-seed funding to accelerate development of its AI-powered platform designed to help data centres reduce energy costs and carbon emissions, as the sector grapples with soaring demand from artificial intelligence and cloud computing.
The round was led by deep-tech VC firm Fly Ventures, early backers of UK autonomous vehicle unicorn Wayve, and joined by Octopus Ventures and Pact VC, alongside angel investors from the data centre industry.
Zendo is building what it calls the first “Energy OS” for data centres—a software platform that helps operators manage the rising volatility of energy markets and AI-driven workloads. Its system delivers predictive analytics and flexible energy solutions, allowing data centres to forecast usage, secure custom energy tariffs, and tap into ‘stranded power’to maximise infrastructure efficiency.
CEO and Co-Founder Jade Batstone described the challenge facing colocation data centres—facilities that lease space to multiple businesses—as akin to “WeWorks for servers”.
“They’re procuring energy to power all their tenants’ workloads,” Batstone said, “but they’re having to make their best guess at how these workloads will evolve over time.”
According to Zendo, data centres now consume nearly 3% of global electricity, and that figure is expected to more than double by 2030, approaching the current total energy usage of Japan. AI alone could account for 70% of data centre capacity by the end of the decade, placing mounting strain on energy grids and sustainability targets.
While renewable energy sources like wind and solar are on the rise, only half of future demand is expected to be met by green sources—creating a significant decarbonisation challenge for the industry.
Zendo claims its models can cut data centre energy costs by up to 25%, while simplifying the adoption of renewables and unlocking new revenue streams from underutilised infrastructure.
“Data centres are a lot like energy suppliers,” added COO and Co-Founder Drew Barrett, formerly Head of Renewable Procurement at Octopus Energy. “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.”
Barrett argues that sustainability and profitability are no longer opposing forces in the sector. “By reducing the cost and complexity of integrating clean energy, we’re enabling data centres to be heroes, not villains, in the energy transition.”
Batstone, a Silicon Valley native and former Square and SWIFT product leader, said Zendo aims to become an indispensable tool for modern, flexible data centres as AI adoption and digitisation accelerate globally.
“Our mission is to decarbonise computing power,” she said. “We empower data centres to become smarter, more efficient and ready for the future of computing demand.”
The round’s investors are bullish on Zendo’s long-term impact.
“We’re delighted to be backing Zendo in their mission to decarbonise data centres,” said Kirsten Connell, Partner at Octopus Ventures. “This is a world-changing problem that will only grow as AI adoption continues its exponential rise.”
Gabriel Matuschka, Partner at Fly Ventures, added: “Zendo is poised to drive a fundamental shift in how data centres evolve to meet future demand. We believe their technology can unlock the next generation of operations that are greener, more efficient, and more profitable.”
With the funding secured, Zendo plans to expand its product development team and scale its platform in the UK and internationally. As AI reshapes the digital economy, Zendo is positioning itself as a key enabler of clean, cost-effective computing at scale.
