As AI adoption skyrockets and cloud platforms expand, the energy demand from data centres is surging—and fast. Experts predict that by 2030, global data centre electricity use could double, hitting around 945 terawatt-hours. That’s nearly as much power as Japan consumes today. But one UK startup, Zendo Energy, believes it has a better way forward.
The London-based company just secured £1.75 million in pre-seed funding to build what it calls the world’s first “Energy OS”—a software platform designed to help data centres slash energy costs, integrate renewables, and operate more efficiently in the face of massive AI-driven growth.
Tackling the Energy Cost Crisis in Data Centres
Led by Fly Ventures—with backing from Octopus Ventures, Pact VC, and several data centre industry angels—the new funding gives Zendo a clear runway to develop its predictive energy management platform. The tool promises to cut energy costs by up to 25%, a major boost for an industry where electricity is the biggest operating expense.
Zendo’s solution targets two of the most urgent problems facing data centre operators today: handling unpredictable AI workloads and dealing with volatile electricity markets, especially as they shift toward renewables. Legacy systems simply weren’t built for this level of complexity.
The startup, founded in 2024, brings heavyweight experience to the table. Co-founder and CEO Jade Batstone, a former Square exec and product innovation lead at SWIFT, joined forces with Drew Barrett, who previously led renewable procurement at Octopus Energy. Their combined backgrounds in clean energy and enterprise software underpin Zendo’s bold mission to modernise the infrastructure behind the internet.
Turning Unused Capacity into Real Value
Zendo’s platform doesn’t just reduce energy bills—it also helps data centres unlock “stranded power.” This term refers to underused energy capacity that sits idle due to poor coordination between space, power, and cooling. Most facilities operate at just half of their potential. Zendo’s software maps this hidden potential, allowing operators to monetise it and improve overall performance.
With AI projected to make up 70% of all data centre workloads by 2030—up from just 15% today—the ability to forecast, optimise, and control energy use has never been more critical.
Smarter Energy Procurement for a Cleaner Future
Power Purchase Agreements (PPAs) are the traditional route for securing renewable energy, but they’re time-consuming and complex. Zendo’s platform uses machine learning to predict usage patterns and streamline the negotiation process. For co-location centres—those that host servers for multiple clients without knowing their exact demand—this is a game changer.
Companies like Google have already shown it’s possible to cut PPA deal times significantly. Zendo wants to bring that same efficiency to the rest of the industry, making renewables more accessible and less risky.
“Data centres operate like energy suppliers,” said COO Drew Barrett. “They sell capacity, and their biggest cost is power. When prices swing wildly, their margins get squeezed. We help them navigate that risk while pushing toward sustainability.”
Building Momentum for Climate-Positive Digital Infrastructure
With cloud computing on the rise and AI workloads exploding, energy use in data centres is expected to be a major driver of electricity demand growth—especially in markets like the U.S., where they could account for nearly half of the increase by 2030.
Investors believe Zendo is arriving at the right moment. Octopus Ventures Partner Kirsten Connell called the company’s work “world-changing,” while Fly Ventures Partner Gabriel Matuschka noted Zendo’s potential to lead a new era of smarter, greener operations.
By helping data centres reduce emissions, improve capacity use, and take control of their energy strategy, Zendo isn’t just building software—it’s offering a roadmap to a more sustainable internet.
