Zendo Energy raises £1.75m to help data centers decarbonize in AI Energy Boom
UK Energy Software Launch Zendo Energy has raised £1.75 million in advance to accelerate the development of its AI-powered platform to help data centers reduce energy costs and carbon emissions as the sector copes with the soaring demand for artificial intelligence and cloud computing.
The round was led by Deep Technology VC Fly Ventures, an early supporter of the British self-driving car unicorn Wayve, and joined by Octopus Ventures and Law Firm with Angel Investors in the data center industry.
Zendo is building what is called the first “energy OS” for data centers, a software platform that helps operators manage the growing energy market and AI-powered workloads. Its system provides predictive analytics and flexible energy solutions, allowing data centers to predict usage, secure custom energy tariffs, and maximize infrastructure efficiency with “stranded Power'to.”
CEO and co-founder Jade Batstone describes the challenges facing hosting data centers (the assets that rent space to multiple businesses) similar to “server WeWorks.”
“They are working hard to power the workloads of all tenants, but they have to best guess how those workloads develop over time,” Butterstone said.
According to Zendo, data centers now consume nearly 3% of global electricity, and by 2030, that number is expected to exceed double, or close to Japan's current total energy. By the end of the decade, AI alone could account for 70% of data center capacity, putting increasing pressure on energy grids and sustainability goals.
While renewable energy sources such as wind and solar are rising, only half of the future demand is expected to be met through green sources, creating a significant decarbonization challenge for the industry.
Zendo claims its model can reduce energy costs in data centers by up to 25%, while simplifying the adoption of renewable energy and unlocking new revenue streams for underutilized infrastructure.
“Data centers are much like energy suppliers,” said Drew Barrett, COO and co-founder, who heads renewable procurement for Octopus Energy. “Their main cost is energy, and their revenue is largely related to the power capacity they sell. If they can't manage price fluctuations, they have the potential to lose profit and competitiveness.”
Barrett believes that sustainability and profitability are no longer the opposition to the sector. “By reducing the cost and complexity of integrating clean energy, we make data centers a hero in the energy transition, not a villain.”
Batstone, a Silicon Valley native and former head of product at Plaza and Swift, said Zendo’s goal is to be an essential tool for modern flexible data centers as AI adoption and digitalization accelerates globally.
“Our mission is to decarbonize computing power,” she said. “We enable data centers to become smarter, more efficient and prepare for the future of computing needs.”
Investors in this round are optimistic about Zendo's long-term impact.
“We are excited to support Zendo’s decarbonized data centers,” said Kirsten Connell, partner at Octopus Ventures. “This is a world-changing issue that will only continue its exponential growth as AI adopts.”
Gabriel Matuschka, partner at Fly Ventures, added: “Zendo is expected to drive the fundamental shift in how data centers can evolve to meet future needs. We believe their technology can unlock the next generation of greener, more efficient and more profitable next-generation operations.”
Zendo plans to receive funding, plans to expand its product development team and expand its platform both in the UK and internationally. As AI reshapes the digital economy, Zendo positiones itself as a key enabler of large-scale clean, cost-effective computing.
