Last Week in ConTech - 10 February 2025
The AI Data Center Boom is Driving a Grid Tech Revolution
Deep Insight: The AI Data Center Boom is Driving a Grid Tech Revolution
This week Big Tech (Amazon, Alphabet, Meta and Microsoft) forecasted over $300 billion in capex spend for 2025.
The rise, up from $155b in 2023 and $246b in 2024, has been driven by the need for computational resources in the form of physical real estate or AI data centres. And at Last Week in ConTech, we are noticing that this rise in AI infrastructure spend is resulting in a focus on Grid Tech.
Here’s why.
AI data centres use more energy than their traditional counterparts. When combined with electrification, it is resulting in an increase in global electricity demand.
At the same time, decarbonization policies are resulting in the decommissioning of polluting energy infrastructure and the integration of renewable energy.
The challenge is that grid infrastructure has been designed for centralized power generation with predictable demand. Renewables produce energy intermittently (ie. you can’t make the sun shine) and their locations are dictated by the natural environment. So while we can construct solar parks or wind farms more cheaply, the challenge is developing the grid infrastructure to connect to them.
To overcome this, the US government has a queue based process.
Before a power plant is connected to the grid, a study must be undertaken to determine if the existing system has enough capacity to handle the new load.
As Brian Potter of Construction Physics noted last week, there are over 11,000 projects waiting for studies, amounting to a generation and storage capacity of ~1,900 gigawatts. This is double the generation capacity in the US.
It’s a major bottleneck for the construction of new electrical infrastructure. It means that we need to optimize the existing grid’s capacity and to integrate renewable energy sources more effectively–leading to an interest in Grid Tech.
Recent funding examples include Veir which replaces conventional power lines with superconductors (raised $90m this week) or Smart Wires which provides utilities with grid enhancing technologies and services such as dynamic line rating software to identify spare grid capacity (raised $65m last week).
In this issue there are:
13 Startup Fundings
14 Policy and Regulatory Changes
9 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
6 News articles
32 new jobs posted - view here
Reading time: 15 min
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Startup Funding
Project Management
Monograph, a San Francisco startup, raised $20m in Series B funding. They have developed a project management platform to help architecture and engineering firms manage phase based budgeting, staffing, billing and profitability tracking across a project’s lifecycle. More here.
[View open jobs - 1 role in Customer Success, 1 role in Software, 1 role in Product, 1 role in Design, 1 role in Sales]
Financials
Trayd, a New York startup, raised $4.5m in Seed funding from investors including Suffolk Technologies. They are developing construction payroll and compliance software designed for specialty contractors which automates back office functions, providing payroll, scheduling, field tracking and accounting services. More here.
[View open jobs - 2 roles in Software]
Design
Genia, a Los Angeles startup, raised $3m in funding. They are developing an AI copilot which enables engineers to validate structural designs. An engineer can upload a PDF or AutoCAD file which instantly outputs up to five structurally sound design options optimized for cost, feasibility and stability as well as providing a detailed materials selection list. More here.
Synaps, an Austrian startup, raised €1.4m in funding. They have developed a collaborative architectural planning tool designed for the browser and allows remote and location independent feedback sessions including the assigning of tasks to stakeholders. More here.
Notes:
Synaps envisions building the ‘Figma for Architects.’
They operated in stealth mode for two years prior to this announcement.
This is interesting as another startup, Motif, which announced $46m in funding last week, is aiming to target a similar market and is also in stealth mode.
I am curious why this particular segment of the market, which typically accounts for Autodesk as a competitor, is choosing to operate in stealth for such a significant period of time.
(Figma too operated in stealth mode for 3 years).
Procurement
Comstruct, a German startup, raised €12.5m in funding. They have developed a procurement platform for construction materials. More here.
[View open jobs - 1 role in Finance, 4 roles in Software, 2 roles in Product]
Notes:
Comstruct have developed what appears to be a marketplace solution.
They realised the pain point for contractors was the need to juggle competing digital or analog processes from each supplier making ordering and reporting difficult.
For contractors they identified their key suppliers and contacted them to develop integrations allowing them to create a uniform data layer.
On top of this layer, they have built modules for ordering, digital delivery receipts, invoice reconciliation and ESG reporting.
Their pricing is currently on a usage-based pricing model with a simple per-document pricing strategy.
I am curious if they could operate in a marketplace provider pricing model in the future as they grow the number of suppliers as well as assisting with the discovery of green materials.
Green Materials
Sequestra, an Austrian startup, raised €1.1m in funding. They are developing a technology platform that determines the potential of residual materials such as steel slag and demolition for the capture of CO2 while making carbonated materials usable for construction applications. More here.
Visibuilt, a Danish startup, raised €1.1m in Per-Seed funding. They are developing a fermentation based binder for asphalt derived from mycelium to reduce carbon emissions. More here.
Asset Management
Villari, a Dutch startup, raised €4m in funding. They have developed a sensor technology which detects tiny fractures in steel structures such as bridges or cranes helping to reduce manual inspections, ensure structural integrity and enact predictive maintenance. More here.
[View open jobs - 1 role in Sales]
Trades
Xoi, a Nashville startup, raised $230m in funding. They have developed a solution for field service technicians in industries such as HVAC, plumbing and electrical services which allows a technician to take a photo instantly access unit information, work documentation, manuals and previous work completed as well as allowing them to easily identify and order required parts. More here.
[View open jobs - 1 role in Sales, 1 role in Software, 1 role in Customer Success]
Notes:
Xoi also acquired Specifx, an on-demand data enrichment and metadata retrieval platform for field service equipment.
Their platform allows a user to provide basic nameplate data.
It then instantly provides metadata such as specifications, features, and performance levels.
3D Printing
SAEKI Robotics, a Swiss startup, raised $6.7m in Seed funding. They have developed an integrated robotic cell which can handle large-scale 3D printing, milling and finishing allowing on demand manufacturing for large parts with complex geometries. More here.
Notes:
SAEKI Robotics have begun selling 3D printed formwork for the construction industry.
They find that their formwork can cut overall concrete volume by up to 70% compared to traditional methods (wood / foam molds).
If you’ve been on a construction site, the amount of wastage from wooden formwork can be significant as we need to create a complex design.
Often the formwork is poorly placed with gaps and excess concrete jackhammered off and thrown out.
SAEKI also has an instant quoting service where a design file can be uploaded and customized with pricing and lead time provided.
Home Services
Lula, a Kansas startup, raised $28m in Series A funding. They have developed a property maintenance solution which streamlines the maintenance process by connecting property managers and investors with a network of vetted contractors such as plumbers, electricians and HVAC contractors. More here.
[View open jobs - 1 role in Project Management]
Grid Tech
Veir, a Massachusetts startup, raised $75m in Series B funding. They replace conventional power lines with superconductors, allowing 5 to 10x the capacity in the same amount of space. More here.
Notes:
One of the major trends is the electrification of society and the investment in renewable energy.
While it has become cheaper to construct the latter, one of the challenges is connecting it to the grid.
In the US, it can take up to 4 years to permit new transmission line infrastructure.
Providing technology or new materials which serve to increase the capacity of existing infrastructure is valuable.
Other
GenLogs, a Washington startup, raised $14.6m in Series A funding. They are developing a freight intelligence platform using a network of roadside sensors to collect data on trucks and trailers across the US. More here.
Notes:
Genlogs' infrastructure passively collects data on truck movements, extracting key details such as equipment types and logos.
This data can be valuable when designing roadways, providing accurate data on heavy vehicle usage which drives pavement thickness.
It would allow designers to save money on traffic assessments as well as reduce overdesign and conservatism in pavement thickness.
This can have significant sustainability and cost savings as with more accurate traffic data we could reduce a pavement thickness by 10-20mm over a 10km roadway leading to substantial cost savings and emission reductions.
Policy and Regulatory Changes
US
USAID’s climate adaptation and resilience pipeline frozen amid agency uncertainty
The Trump administration moved to freeze USAID’s operations.
The upheaval has left billions in federal aid hanging in the balance, including dozens of international climate and energy initiatives.
Some affected initiatives include:
The President’s Emergency Plan for Adaptation and Resilience, a program created by the Biden administration that is aimed at assisting emerging countries in adapting to climate change.
The Sustainable Investment Accelerator, USAID’s flagship initiative to increase investment in adaptation and mitigation efforts in emerging economies.
The Scaling Up Renewable Energy initiative, which provides planning, procurement, and grid integration support to help countries transition to low-carbon economies.
This could also impact the U.S.-led Power Africa program, aimed at boosting electricity across the continent which has maintained bipartisan support.
US DOT says it will tie funding to birth, marriage rates
A new, undated memo from the U.S. Department of Transportation directs the department to give grant preferences to “communities with marriage and birth rates higher than the national average.”
Geographic areas that could be most negatively affected by this policy would include states like Oregon, Colorado and California that have some of the country’s lowest fertility rates.
South Dakota, Texas and Nebraska have some of the highest.
The memo also prohibits DOT support recipients from imposing vaccine or mask mandates and requires local compliance with federal immigration enforcement.
Boston expands net-zero emissions requirements to new buildings, large additions
The Boston Zoning Commission has approved an amendment to the city’s zoning code that requires most large new buildings to have net-zero carbon emissions from the day they open.
The amendment sets a net-zero emissions standard for new project filings after July 1, 2025, that:
Contain 15 units or more
Are a minimum of 20,000 square feet, or
Add 50,000 square feet or more to existing buildings.
This is as buildings are the source of nearly 71% of the community’s carbon emissions.
US Department of Transportation memo
The memo instructed the DOT staff to identify and eliminate nearly all programs concerning climate change, racial equity, gender identity, DEI, or environmental justice implemented during the Biden administration.
This memo has also cancelled:
The Climate Change Climate Change Adaptation and Resilience Policy for DOT Operational Assets.
The Department of Transportation Equity Council.
The Actions to Address Environmental Justice in Minority Populations and Low-income Populations.
Trump delays tariffs on Canada, Mexico; China strikes back at US
Trump signed a series of Executive Orders placing tariffs with a:
25% tariff on goods from Mexico.
25% tariffs on goods from Canada and a 10% tariff on Canadian energy sources.
An additional 10% tariff on imports from China.
After discussions, the US and Canada will delay tariffs by one month.
Mexico and the US will delay tariffs after they came to a series of agreements relating to drug and arms trafficking.
China has responded to U.S. tariffs by announcing additional tariffs on the U.S., including a 15% tax on coal and liquefied natural gas, with a 10% rate on crude oil, agricultural machinery and some cars.
California PUC streamlines transmission permitting process
They now require project developers to meet with commission staff before filing a permit application to help the review process run smoother.
They also give transmission developers a chance to submit a draft version of California Environmental Quality Act documents instead of an environmental assessment to help speed permit reviews.
California will need about $46 billion to $63 billion in new transmission over the next 20 years.
A Key Federal Agency Stopped Approving New Renewables Projects
The Army Corps of Engineers, which oversees U.S. wetlands, halted processing on 168 pending wind and solar actions.
They are pending feedback on an executive order signed by Trump.
New York reintroduces bills seeking climate risk, emissions disclosures
The state of New York reintroduced a pair of bills last week that call for climate risk and greenhouse gas emissions disclosures.
It would require entities whose revenue exceeded $1 billion in the prior fiscal year to disclose their carbon footprint if they do business in the state.
Shapiro wants to boost state energy production
Pennsylvania Gov. Josh Shapiro unveiled his proposal in Pittsburgh, promising tax credits and a fast track for energy facilities powered by renewable, nuclear and fossil fuels.
He wants to increase energy production to help lower utility costs including powering electric vehicle factories and data centers.
All power plants could qualify for $100 million each per year for three years under Shapiro's proposal.
Hydrogen producers could earn up to $49 million per year.
Aviation fuel producers could qualify for $15 million per year.
Trump admin halts EV charging money
The Trump administration has frozen funding for a $5 billion program to build a nationwide network of electric vehicle charging stations.
The Federal Highway Administration sent a letter to transportation departments, stating “no new funding obligations may occur” under the National Electric Vehicle Infrastructure program.
UK
Keir Starmer looks to link UK and EU emission trading schemes
This would make it possible to avoid border frictions caused by the EU and UK imposing carbon border adjustment mechanisms (CBAMs).
This is a tax on carbon-intensive imports such as steel, cement and fertiliser.
India
India Set to Ease Nuclear Laws to Draw Private Capital
The government will amend its civil nuclear liability law.
The existing law holds both plant operators and equipment suppliers liable for damages in case of an incident, making companies reluctant to sign deals with India.
They also proposed a change in regulation to allow private businesses to enter the nuclear power generation segment.
It was previously in the hands of state monopoly Nuclear Power Corp. Of India Ltd.
New Zealand
New Zealand Greenlights Adaptation Framework
The Adaptation Framework aims to minimise the long-term costs of climate-proofing New Zealand, maintain “efficient housing and insurance markets.”
It gives people the ability and incentive to take risk-reducing measures where they can.
It also wants to offer property owners certainty on the type of help they can expect from the government.
Kenya
New building code to transform construction industry
This code replaces the outdated 1968 Local Government (Adoptive By-Laws) Order, bringing modern standards to building design, construction, and maintenance.
It addresses the limitations of the 1968 Code, which focused narrowly on conventional materials.
The new code incorporates provisions for sustainable materials, modern technologies, and disaster resilience.
National Infrastructure Projects & Priorities
Global
Global Investment in the Energy Transition Exceeded $2 Trillion for the First Time in 2024
The report finds investment in the energy transition is higher than ever, but growth has slowed.
The investment breakdown was:
Electrified transport - $757 billion
This includes spending on passenger EVs, electric two- and three-wheelers, commercial electric vehicles, public charging infrastructure and fuel cell vehicles.Renewable energy - $728 billion
This includes investment in wind (both on- and offshore), solar, biofuels, biomass and waste, marine, geothermal and small hydro.Power Grids - $390 billion
This includes investment in transmission and distribution lines, substation equipment, and the digitalization of the grid.
China invested most and drove the majority of the growth in 2024, eclipsing the US, the EU, and the UK.
US
Big Tech presses on with massive AI spending plans for 2025
Microsoft, Alphabet, Amazon and Meta have reported combined capital expenditure of $246bn in 2024, up from $151bn in 2023.
They forecast spending could exceed $320bn this year as they compete to build data centres.
New solar plants expected to support most U.S. electric generation growth
The US Energy Information Administration expects U.S. renewable capacity additions—especially solar—will continue to drive the growth of U.S. power generation over the next two years.
They expect U.S. utilities and independent power producers will add 26 gigawatts (GW) of solar capacity to the U.S. electric power sector in 2025 and 22 GW in 2026.
Restructured Calif. High-Speed Rail Is Poised to Lay Track
The California High-Speed Rail project aims to have trains running in five to eight years.
The project onboarded new leadership focused on delivering the state’s largest current infrastructure development faster and more smoothly.
The 494-mile project to connect San Francisco and Los Angeles with trains traveling up to 220 mph is expected to cost about $130 billion.
Chevron Joins Race to Generate Power for A.I.
The oil company plans to build natural gas power plants that will be directly connected to data centers used by technology companies for artificial intelligence and other services.
They say they have ordered critical equipment, scouted potential sites and can have their first plant online within three years.
Oil producers had previously avoided power generation as it was much less profitable than drilling and processing oil and gas.
Natural gas-fired power plants cost around $2 billion per gigawatt, Morgan Stanley recently estimated.
China
China embarks on construction of vast new military complex
China is set to start building a huge new military complex outside Beijing that could be up to 10 times larger than the Pentagon in the US.
UK
UK-Morocco Power Link Seeks Political Support to Unlock $29.9 Billion Green Project
The project aims to establish 11.5 gigawatts of solar and wind farm capacity in Morocco’s Guelmim Oued Noun region, coupled with a 22.5 GWh/5 GW battery storage system.
The power will be transmitted through a 4,000-kilometer undersea cable.
Xlinks is targeting a final investment decision this year, with financial close expected in 2026 and construction to begin before the end of next year.
The UK has a 2030 deadline for a clean power grid.
India
Fall in award of national highways projects likely to slow construction in next 2 years
There has been a reduction in the award of new projects in 2023-24 and the current financial year.
Typically, it takes at least two years for a highway stretch to be built from the date of award of works.
The road transport ministry has a target of constructing 10,400 km of national highways this fiscal year.
Panama
Rubio hails Panama's move to exit Chinese infrastructure plan
Panama has made a decision to let its participation in China's global infrastructure plan expire.
Panama was the first Latin American country to officially endorse the Belt and Road Initiative in November 2017.
The initiative involves a $1 trillion network of railroads, ports and other infrastructure spanning across the world.
Acquisitions
Tyler Technologies, a Texas company end-to-end solutions for the public sector, acquired MyGov, an Oklahoma company offering software for local governments to manage tasks such as permitting, inspections, planning, zoning, code enforcement and work orders. More here.
News
Tracking the EV battery factory construction boom across North America
Price tag for Amazon’s Mississippi data centers jump 60% to $16 billion
When Amazon announced the project a year ago, the company put the price tag at $10 billion.
Data center costs keep getting bigger, owing in large part to the need for expensive equipment from suppliers like Nvidia Corp.
Contractors scramble to stay on top of Trump’s new policies (Construction Dive)
Trump’s Halt on Climate Spending Freezes Jobs and Stalls Projects (New York Times)
Investors Who Shunned the U.S. Office Market Are Coming Back
Landlords note a pickup in leasing activity as more businesses require workers to return to the office.
Some investors are buying premium-quality buildings that are burdened with debt, or scooping up half-empty towers for pennies on the dollar.
Others are bidding on obsolete office properties with an eye toward converting them to apartments.
Purdue launches new contech program in Indianapolis
West Lafayette, Indiana-based Purdue University is offering a new program for students interested in construction technology.
Students at Purdue Polytechnic Institute will learn how to successfully manage construction projects, from conceptual budgets to day-to-day operations to project turnover and completion.
The construction management technology program also aims to be one of the first of its kind to offer a registered apprenticeship in construction management.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.