With world population becoming progressively urbanized, approximately 55% to date, the typology of the skyscraper is promoted as potentially socially and economically successful solution. However, an important challenge set on a worldwide basis is how to reduce their high-energy demands, environmental and social imbalances to meet growing strict regulations on carbon emissions and sustainable development. This paper looks at the challenges of skyscraper development in relation to energy efficiency, and investigates strategies towards achieving reducing its energy consumption. A 100m tall model is simulated using the climatic characteristic of Tel Aviv, and energy consumption is studied according to two parameters: the thermal advancement of the building envelope, and the effect of the changing microclimate in relation to altitude. The model is then simulated at 200m-400m high (60 – 125 stories high) and energy consumption is compared in relation to altitude.