Zendo Funding News- London-based Zendo Raises £1.75M In Pre-Seed Round

The funding round was led by Fly Ventures, with participation from Octopus Ventures, Pact VC, and angel investors connected to the data centre industry.

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Founded in 2024, Zendo addresses the increasing energy demands of AI computing and the need to decarbonize digital infrastructure. Their platform utilizes predictive analytics to optimize energy usage, forecast demand, and integrate renewable energy sources like wind and solar more effectively.

Zendo's software solutions help data centres reduce energy costs and emissions by leveraging real-time analytics and automated systems. Additionally, the platform enables data centres to support the energy grid by utilizing on-site energy assets, potentially unlocking new revenue streams.

“Our mission is to decarbonise computing power,” said Jade Batstone, CEO and Co-Founder of Zendo. “We empower data centres to become smarter, more efficient and ready for the future of computing demand.”

As artificial intelligence (AI) becomes more prevalent, it's placing a significant strain on data centers and the energy systems that support them. By 2030, AI tasks are expected to consume up to 70% of data center capacity, leading to a substantial increase in electricity demand.

The International Energy Agency (IEA) projects that global electricity consumption by data centers will more than double by the end of the decade, potentially reaching levels comparable to Japan's current total power usage .

Despite efforts to incorporate renewable energy sources, it's anticipated that only about half of this increased demand will be met through renewables. This disparity underscores the challenges in aligning rapid digital growth with global climate objectives.

“Data centres are actually a lot like energy suppliers - their main cost is energy and their revenues are largely tied to the power capacity they sell,” said Drew Barrett, COO and Co-Founder of Zendo. “Being able to manage price volatility is critical for these data centres to protect their margins and maintain competitiveness.”

Zendo, bring over 20 years of combined experience in B2B software and renewable energy. Batstone, a Silicon Valley native, previously worked at Square and led product innovation at SWIFT. Barrett, formerly Head of Renewable Procurement at Octopus Energy, managed a multi-million-pound business unit within the UK's largest energy supplier.

Zendo focuses on assisting colocation data centres—shared facilities where multiple companies lease server space. These centres face challenges in predicting energy demands due to the diverse and unpredictable workloads introduced by AI applications.

Zendo's platform aims to help these data centres operate more efficiently by using predictive analytics to optimise energy usage, forecast demand, and integrate renewable energy sources like wind and solar more seamlessly .

“These facilities are like WeWorks for servers,” Batstone noted. “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 over time.”

The investment also indicates a growing interest among investors in next-generation infrastructure solutions that support greener and more scalable computing.

“This is a world-changing problem, one that will only become more pressing as AI adoption continues its exponential rise,” said Kirsten Connell, Partner at Octopus Ventures. “We’ve been really impressed with the team to date, and are looking forward to working with them to build a more sustainable planet.”

Gabriel Matuschka, Partner at Fly Ventures, added: “We believe their technology can unlock the next generation of data centre operations that are greener, more efficient and more profitable.”

About Zendo

Zendo Energy is a London-based startup founded in 2024 by Jade Batstone and Drew Barrett. The company has developed an AI-powered platform designed to help data centers reduce energy costs and emissions by optimizing their energy usage and integrating renewable energy sources.