• $75 million Series B led by Lightspeed brings total funding to $94 million as Tem scales AI-driven energy transaction infrastructure.
• Platform processed $300 million in gross transaction value and 2 TWh across 2,600 UK customers in 2025, cutting operating costs by up to 30%.
• Expansion into Texas and Australia targets regions facing rapid load growth from data centres and electrification.

As power demand from AI and electrification accelerates, UK-based energy infrastructure company Tem has raised $75 million in a Series B round to modernise how electricity is bought and sold.

The round was led by Lightspeed Venture Partners, with participation from Hitachi Ventures, Voyager Ventures, Schroders Capital, AlbionVC, Atomico and Allianz. Lightspeed partner Paul Murphy joins the board. The raise brings Tem’s total funding to $94 million.

The capital injection comes at a critical juncture. Global electricity demand is forecast to rise by as much as 165% by 2030, driven by data centres, AI workloads and broader electrification of transport and industry. Yet much of the energy market still runs on fragmented systems, opaque pricing and multi-layered brokerage structures that inflate costs and obscure risk.

Tem’s pitch to investors is straightforward: modern infrastructure is overdue.

An AI Core For Energy Transactions

Founded in 2021, Tem built an AI-driven transaction engine designed to automate and streamline energy contracting. Its core platform, Rosso, uses machine learning models to forecast supply and demand, generate transparent contracts and connect suppliers and buyers directly.

Traditional markets rely on brokers, traders and multiple intermediaries, each adding separate fees. Rosso aims to collapse those layers into a single infrastructure backbone. By reducing manual processes and redundant steps, Tem says it can lower operating costs for businesses by up to 30%.

The company processed $300 million in gross transaction value in 2025 and handled 2 terawatt-hours of electricity for more than 2,600 UK customers. Clients include Boohoo, Fever-Tree, Silverstone and Newcastle United FC.

Alongside Rosso, Tem operates RED, a neo-utility layer that demonstrates the platform’s capabilities in practice. Through RED, customers can buy and sell energy, manage usage and access clear pricing without hidden fees. The company describes RED as a working proof point for what clean digital infrastructure can enable.

Tem argues that electricity prices should move closer to wholesale rates by removing unnecessary layers between generation and consumption. Fewer intermediaries, in its model, translate into lower structural costs.

Capital To Expand Beyond The UK

The new funding will support international expansion, beginning with Texas and Australia. Both markets are experiencing rising energy demand linked to industrial growth and large-scale data centre development. Both also operate within regulatory frameworks that allow competitive retail and wholesale market participation.

For executives and investors, the geographic focus reflects a broader thesis: markets under stress from load growth are more likely to adopt infrastructure that improves price transparency and contract efficiency.

Tem positions itself not as a retail energy supplier but as a foundational infrastructure provider. It compares its ambition to companies such as AWS or Stripe, aiming to power transactions in the background rather than own end customers. The goal is to license Rosso to utilities, brokers and new market entrants across multiple jurisdictions.

CEO Joe McDonald said the business could have remained profitable without raising capital but chose to accelerate growth instead. The company intends to pursue public markets in the future, seeking global scale before doing so.

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Governance, Transparency And Market Efficiency

Energy markets sit at the intersection of public policy, financial risk and climate transition. Governments are pushing for decarbonisation, while corporations face mounting scrutiny over energy sourcing, cost volatility and Scope 2 emissions disclosures.

In that context, infrastructure that improves contract clarity and price visibility carries governance implications. Transparent pricing reduces disputes and accounting ambiguity. Automated forecasting enhances risk management. Direct supplier-buyer connections may also facilitate more efficient procurement of renewable power.

Tem competes with players such as Enel X, which focuses on global energy management services, and Octopus Energy, known for retail supply innovation in the UK. Tem’s focus is narrower but more structural. It seeks to rebuild the transaction layer underpinning the entire system.

The company argues that more distributed and digitised energy networks generate richer datasets, which in turn improve AI forecasting accuracy. Better demand prediction can reduce waste, improve resilience and support long-term system stability.

Over the next three to five years, Tem plans to deploy its infrastructure across multiple markets, expanding its data pool and refining price models as adoption grows.

For C-suite leaders and investors, the question is less about retail branding and more about backbone architecture. As AI increases electricity consumption and governments tighten climate targets, the efficiency of the transaction layer will increasingly influence corporate energy costs and decarbonisation strategies.

Tem’s bet is that modernising that layer is not optional. It is foundational to how energy markets will function in the decade ahead.

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