AI-powered energy transaction platform Tem has raised $75 million in a Series B funding round to scale its technology and expand into new global markets. The round was led by Lightspeed Venture Partners, with participation from Hitachi Ventures, Voyager Ventures, Schroders Capital, AlbionVC, Atomico, and Allianz. The latest raise brings Tem’s total funding to $94 million.

Scaling Infrastructure for Surging Energy Demand

Founded in 2021, Tem aims to modernise energy markets by replacing legacy systems with an AI-driven transaction engine. The company argues that outdated infrastructure increases costs and hides risks across energy markets, particularly as demand surges from data centres, AI workloads, and broader electrification trends. Industry forecasts suggest electricity demand could rise by as much as 165% by 2030, intensifying pressure on existing systems.

Tem’s platform automates energy transactions through a central AI engine, reducing intermediaries and simplifying contracting processes. The company reports that its system can lower operating costs for businesses by up to 30% while improving price transparency.

In 2025, Tem processed 2 terawatt-hours (TWh) of energy and handled $300 million in gross transaction value across more than 2,600 UK customers. Clients include Boohoo, Fever-Tree, Silverstone and Newcastle United FC.

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AI at the Core: Rosso and RED

Tem operates through two primary products. Rosso serves as the core AI-powered transaction engine, using machine learning models to forecast supply and demand and automate energy contracts. By directly connecting buyers and suppliers, Rosso reduces reliance on brokers and trading desks, lowering complexity and associated fees.

RED functions as a neo-utility interface built on top of Rosso. It enables customers to buy, sell, and manage energy through a transparent pricing structure, eliminating hidden fees commonly found in traditional markets.

The company positions itself not as a retail energy supplier, but as infrastructure similar to platforms such as AWS or Stripe, aiming to power transactions in the background for utilities and market participants globally.

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International Expansion Plans

With the new capital injection, Tem plans to expand beyond the UK into Texas and Australia, two markets experiencing rising demand driven by industrial growth and data centre expansion.

The firm intends to broaden adoption of Rosso across multiple utilities and regions, increasing its dataset to enhance forecasting accuracy and pricing efficiency. Over the next three to five years, Tem aims to scale globally and potentially pursue a public listing once it achieves wider infrastructure adoption.

By focusing on AI-enabled transparency and efficiency, Tem is positioning itself at the centre of a rapidly evolving energy ecosystem where digital infrastructure and decarbonisation goals increasingly intersect.

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