Zendo Energy snaps up £1.75M to build the first ‘Energy OS’ for data centre decarbonisation

Thanks to the widespread adoption of AI and the rapid rise of cloud computing and streaming services, electricity demand from data centres globally is expected todouble by 2030, reaching approximately 945 terawatt-hours (TWh) — equivalent to Japan’s current energy consumption. Zendo Energy offers a solution that promises to cut data centre energy costs by 25% while simplifying renewable energy integration.
Today, British startup Zendo Energy announces a £1.75 million pre-seed funding round to develop its pioneering ‘Energy OS’ for decarbonising data centre computing power. Fly Ventures, the deep tech VC firm known for backing UK autonomous driving unicornWayve, led the round.Octopus Venturesand Pact VC participated alongside angel investors from the data centre industry.
This investment will accelerate Zendo’s development of an advanced software platform that helps data centres manage two critical challenges: adapting to unpredictable AI workloads and navigating volatile energy markets dependent on intermittent renewable sources. The platform addresses a pressing need, as traditional energy procurement and management methods become obsolete due to increasingly dynamic AI workloads.
Zendo Energy, founded in 2024, combines over two decades of expertise in renewable energy and B2B software. Its founders areJade Batstone, former Square executive and Product Innovation Lead at SWIFT, andDrew Barrett, former Head of Renewable Procurement at Octopus Energy, the UK’s largest energy supplier. Their mission: to transform the data centre industry into a smarter, more efficient, and future-ready sector.
The AI-powered platform delivers flexible energy solutions through predictive analytics, enabling data centres to forecast demand and optimise infrastructure value. By reducing energy costs up to 25% and streamlining renewable energy integration, Zendo helps transform an industry traditionally reliant on fossil fuels.
A key innovation is Zendo’s ability to unlock “stranded power” — unused energy capacity resulting from mismatches between power, cooling, and space. While many data centres utilise only half their installed capacity, Zendo’s software helps operators identify and monetise this stranded capacity, enhancing both efficiency and revenue.
Data centres consume 1-1.5% of global electricity, steadily climbing. They’re projected to drive nearly half of the electricity demand growth in the US through 2030. Goldman Sachs Research predicts global data centre power demand will surge 165% by decade’s end, requiring $720 billion in grid infrastructure investment.
AI drives most of this growth. By 2030, AI workloads are expected toaccountfor 70% of data centres’ total capacity, up from 15% today. This particularly challenges colocation data centres, which must supply power to multiple companies without complete visibility into application demands.
“These facilities are like WeWorks for servers,” said Jade Batstone, CEO and Co-Founder of Zendo Energy. “They’re procuring energy to power all of their tenants’ workloads, but they’re having to make their best guess at how these workloads will evolve.”
Traditionally, data centres secure renewable energy through Power Purchase Agreements (PPAs) — complex contracts that take up to a year to negotiate. Colocation providers face particular challenges, balancing multiple tenants’ varying usage patterns. Zendo’s platform streamlines this process, using predictive analytics to help operators secure customised energy tariffs and integrate renewables efficiently.
Google has demonstrated the potential, reducing PPA negotiations to about 100 days and securing over 1.5GW of clean energy annually. Zendo aims to bring similar efficiency to the broader market, making renewable energy adoption faster and less risky for all data centres.
Drew Barrett, COO and Co-Founder of Zendo Energy, added: “Data centres are a lot like energy suppliers – their main cost is energy and their revenues are primarily tied to the power capacity they sell. Since energy costs are often passed through to the end customer, managing price volatility is critical for these data centres to protect their margins and maintain competitiveness in the market.
“Cost and sustainability should not be at odds in this industry,” said Drew. “By supporting operators to get the most out of their existing infrastructure and reduce the risk, cost and complexity of renewable energy adoption, we’re enabling data centres to be heroes rather than villains in the global clean energy transition.”
The robust pre-seed round reflects market confidence in Zendo’s ability to boost revenue and generate energy savings for data centres amid unprecedented industry demand.
Kirsten Connell, Partner at Octopus Ventures, said: “We’re delighted to be backing Zendo Energy in their mission to decarbonise data centres. This world-changing problem will only become more pressing as AI adoption continues its exponential rise, and requires exceptional founders to solve it. We’ve been impressed with the team and look forward to working with them to build a more sustainable planet.”
Gabriel Matuschka, Partner at Fly Ventures, said: “Zendo is poised to drive a fundamental shift in how data centres evolve to meet future demand, addressing the industry’s key challenges of capacity constraints and decarbonisation head-on. We believe their technology can unlock the next generation of data centre operations that are greener, more efficient and more profitable. It’s a pleasure to support them from the earliest stage of their journey.”
As data centres expand their role in global digital infrastructure, solutions like Zendo’s Energy OS will become increasingly vital in balancing growing computing demands with climate imperatives.