Hopes to create more bespoke procurement strategies for the data center market.
Startup Zendo Energy has come out of stealth to try to improve energy procurement for the data center industry.
The company raised $2.2 million in a pre-seed funding round led by Fly Ventures with participation from Pact, Octopus Ventures, and data center industry angel investors.
Zendo plans to build what it calls an 'Energy OS' for data centers, focused on energy procurement, capacity planning, and reporting, with embedded predictive analytics and forecasting tools.
The company claims its platform can help unlock stranded capacity and deliver up to 25 percent in monthly energy cost savings. While most energy brokers treat data centers as a single large customer, Zendo says that it looks at the individual workloads from data center users to help cater to the differing needs.
“Data centers actually look a lot like energy suppliers - their main costs are energy and their revenue is largely tied to the power capacity they sell, measured in kilowatts,” COO Drew Barrett said.
“Since energy costs are often passed through to their end customers, accounting for up to 70 percent of their bills, having strategies in place to manage price volatility is critical to protecting margins.”
Barrett spent the last 13 years at UK energy supplier Octopus, most recently as the head of renewable procurement.
Cofounder and CEO Jade Batstone spent nearly five years at payments company Square, and was an innovation manager at SWIFT.
“With the backing of our fantastic investors, we see Zendo becoming an indispensable partner in energy planning and management to modern, flexible data centers around the world," Batstone said.
