UK startup Grid Edge raises £2.8M to cut building emissions and energy costs with AI

Running large commercial buildings is expensive—and wasteful. Energy bills keep climbing, and building owners are under pressure to cut emissions. That’s where Birmingham-based startup Grid Edge comes in. The company’s AI-driven platform helps building operators use less energy, reduce their carbon footprint, and lower costs—all without tearing out existing systems.

Now, the company has raised £2.8 million to scale up. The funding round includes backing from Midlands Engine Investment Fund II, Mercia Ventures, Centrica, bp Ventures, and a group of private investors. It’s still subject to approval under the National Security and Investment Act (NSIA).

Grid Edge’s software is already being used in sites like Birmingham’s Bull Ring shopping center and the Royal Opera House in London, along with major facilities management firms such as Amey, Equans, and OCS.

The tech works by pulling data from meters, sensors, and building management systems, then combining it with external sources like weather forecasts and energy tariffs. The system uses machine learning to spot patterns in how buildings operate and offers recommendations that cut energy waste. According to the company, customers typically see a 20% drop in both costs and carbon emissions, with a return on investment in under six months.

The new funding will support Grid Edge’s push for growth—adding 15 new hires to its current 28-person team and bringing more commercial buildings onto its platform. The company plans to scale from 120 to 400 locations and has already grown its annual recurring revenue by 150% in the past year.

CEO Paul McCorquodale said, “Our mission is to simplify the complex world of energy and building management systems, empowering building operators to reduce carbon emissions and save money. Our focus on tangible results has led to a huge increase in demand from businesses to join the Grid Edge community.”

Grid Edge was founded in 2016 by Jim Scott, Dan Wright, and Tom Anderson, who first crossed paths at Aston University. They were later joined by Richard Moore, formerly of Deloitte US, and McCorquodale, whose background includes leadership roles at EE and Amber Energy.

Beth Bannister, Senior Investment Manager at the British Business Bank, said the investment reflects the fund’s aim of supporting growing Midlands-based businesses like Grid Edge. Rafael Joseph of Mercia Ventures added that the company is well-positioned as businesses face rising energy prices and tighter carbon reporting rules.

With energy management moving higher on the agenda for building owners, Grid Edge is betting that smarter software can make a measurable difference—and fast.