Last Week in ConTech - 16 March 2026
Will the Data Centre Boom Go Bust?
Deep Insight: Will the Data Centre Boom Go Bust?
The US construction industry is increasingly propped up by the data center boom.
It’s showcased by the two-tier construction environment with construction firms that are generating more than $100m in revenue reporting their highest backlog since 2021 (~14.2 months) while firms under $30m report backlogs closer to 6.7 months.
The difference is attributed to hyperscale data center projects boosting pipelines. It comes as reports indicate there are commitments to over $700b in future data center leases.
But the question is will they actually get built?
Public opposition to data center projects is growing with lawmakers in at least 11 states introducing legislation that would temporarily ban data centers. Some of the measures would establish an indefinite moratorium while others would ban new data centers for several years.
It’s spearheaded by Georgia where a state lawmaker introduced a bill proposing what could become the first statewide moratorium on new datacenters in America. It matters as Atlanta overtook Northern Virginia for data center construction in 2024.
Big Tech is fighting back, having raised over $125m for a Super pac called ‘Leading the Future’, focused on advancing a ‘positive, forward-looking agenda for AI innovation in Washington, D.C. and across the United States.’
But will it be enough?
According to Data center watch, public opposition to construction is rising with 25 projects being blocked in 2025. Of this 21 of the cancellations occurred in the second half of the year and is a sharp increase from 6 cancellations in 2024 and 2 in 2023.
And while state legislators are debating moratoriums, counties and city councils are charging ahead, reducing tax breaks and banning new permits in a bid to restrain rising electricity costs.
For those in the industry, we sit on a precipice.
Data center construction remains the fastest growing construction segment, requiring investment to meet demand. But political uncertainty could see backlogs cut quickly, pulling firms back into the broader construction downturn.
The risk can be managed at the project level.
Filtering by location, permitting environment, and funding source will increasingly determine which projects actually get built and which ones stall before construction even begins.
In this issue there are:
7 Startup Fundings
1 Startup out of Stealth
14 Policy and Regulatory Changes
5 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
7 News articles
51 new jobs posted - view here
Reading time: 10 mins
Startup Funding
Inspections & Monitoring
City Detect, an Alabama startup, raised $13m in Series A funding. They are building a vision AI solution for local governments to monitor the health of buildings by mounting cameras on public vehicles like garbage trucks and capturing photos of surrounding buildings as they pass to ensure code compliance. More here.
Wavelogix, an Indiana startup, received $500k in grant funding. They have developed an IoT sensing and data analytics platform including concrete strength sensors which provide real time measurements of in place concrete strength which allows for data driven decision making on scheduling without requiring lab testing. More here.
Notes:
When concrete is poured on site we usually collect small test cylinders from the same batch and cure them in a lab to calculate the strength.
At regular intervals (1, 7, 14 and 28 days after pouring) the lab completes destructive testing to confirm the strength of the concrete placed.
This allows us to understand the strength development of the in-situ (on site) concrete. While accurate, there can be discrepancies between the lab and in-situ strength development due to differences in curing conditions.
For critical projects where concrete strength is crucial for proceeding to the next stage (e.g. opening a road to traffic), measuring the in-situ concrete strength directly can provide more immediate and accurate data than relying solely on lab-cured cylinder tests.
I really like these solutions as I used to work night shifts where we would pour rapid set concrete for time critical projects.
I’d have to wait for the 4 hour lab result to confirm the concrete strength met the performance specification before I could finish my report and leave for home.
With real time sensors, I could have left earlier and gotten more sleep.
Estimating
Rebar, a New York startup, raised $14m in Series A funding. They are building an AI platform for HVAC contractors and distributors that uses vision models to review construction drawings for takeoffs and automatically generates a quote. More here.
Procurement / Marketplace
Voomi Supply, a Pennsylvania startup, raised $10m in Series A funding. They are building an eCommerce platform to streamline procurement for trades by allowing them to purchase HVAC equipment online. More here.
Asset Management
Skanio, a Finnish startup, received investment. They are building a reality capture solution for the elevator industry, developing a digital elevator database to streamline the inspection and modernization planning process. More here.
Notes:
The global elevator market has a value of ~$107 billion in 2024 and is expected to grow by around a third by 2030.
The challenge is that companies often lack reliable digital information about existing elevators, their technical specifications, and the surrounding structures.
This makes modernization planning and tendering slow and expensive.
Energetic Retrofits
Coral, a New York startup, raised $7.5m in Seed funding. They help HVAC and electrical upgrades installers lower the upfront costs of energy efficient systems by applying for instant rebates and financing for their customers. More here.
Notes:
Coral doesn’t own the customer relationship or sell to the end customer and use a marketplace to deliver their services.
Instead they sell to the HVAC or installation company who can provide details to quote the savings.
Additionally they provide the rebate funds one day after the installation instead of waiting for approvals.
Construction Management
Yourco, a Chicago startup, raised $6m in Series A funding. They provide SMS-based, two way frontline employee communication software for deskless workforces including construction, providing real time visibility and allowing for use cases such as company wide announcements, employee alerts, surveys and more. More here.
Out of Stealth
Bowser AI, a San Francisco startup, emerged out of stealth. They are building a construction intelligence platform. View the website here.
Policy and Regulatory Changes
US
Whitehouse: Permitting talks ‘likely’ to resume
One of the top Democratic negotiators on permitting overhaul in the Senate said that formal talks would “likely” be back on.
It is one of the first clear signs that negotiations on how to streamline the country’s infrastructure permitting laws talks could resume this Congress.
Negotiations have been stalled in the upper chamber since the Trump administration issued stop-work orders for five offshore wind projects in December 2025.
Senate test vote on bipartisan housing package succeeds
The Senate approved a procedural test vote needed to begin debate on bipartisan legislation designed to expand housing supply and lower the cost of homebuying.
The 84-6 vote showed broad interest in advancing the housing package, which the Senate will continue to debate.
The House package, called the 21st Century Act, passed in an overwhelming 390-9 vote last month.
The Senate had a separate bipartisan bill called the Renewing Opportunity in the American Dream (ROAD) to Housing Act, which unanimously cleared the Senate Banking, Housing and Urban Affairs Committee last year.
The new bill the Senate released ahead of its first procedural vote combines provisions from both measures.
It also includes a President Trump-pushed policy to ban institutional investors from buying single-family homes.
Nearly 60 Gigawatts of US Clean Power Stalled
A total of 59 gigawatts of US clean energy projects are facing delays at a time of surging power demand from AI data centers.
Developers are seeing an average delay of 19 months over issues such as long interconnection times, supply constraints and regulatory barriers.
The potential energy generation facing delays is the equivalent of 59 traditional nuclear reactors.
Despite the hurdles, developers were able to bring more than 50 gigawatts of wind, solar and batteries online in 2025.
US judge strikes down Biden-era home energy efficiency standards
A federal judge has found that minimum energy standards for federally-funded housing set by former President Biden’s administration were unlawful.
HUD and the USDA adopted the standards as part of a broader push by the Biden administration to reduce carbon emissions that contribute to climate change.
The standards applied to new affordable housing construction built with federal financing provided by HUD or the USDA.
It covered insulation, windows, lighting and heating and cooling systems, among other energy-related aspects of a home.
US judge orders refunds for more than $130bn in illegal Trump tariffs
A US trade court judge ordered the government to begin paying refunds to importers who paid tariffs that the supreme court said last month were collected illegally.
The US government collected more than $130bn in illegal tariff payments, which were central to Donald Trump’s trade policy.
The supreme court did not provide guidance for issuing refunds.
Mayor Mamdani unveils new rules to remove unnecessary scaffolding across New York City
New York City Mayor Zohran Mamdani and the Department of Buildings announced a series of new rules to take down unnecessary sidewalk sheds.
They also reduce the amount of scaffolding needed for some construction projects.
Citywide sidewalk sheds cover 380 miles or 7,500 city blocks.
The changes would limit the distance scaffolding can extend from a building and extend time between facade inspections to 12 years for buildings up to 40 years old.
Florida advances bill to bypass local zoning, allow residential development on brownfields
The Florida State Legislature passed the Infill Redevelopment Act that requires local governments in South Florida to permit residential development on parcels of least 5 acres.
This includes “brownfields” or land deemed contaminated next to other parcels zoned for residential use.
The bill, which aims to increase the state’s housing supply, applies to counties with more than 1.475 million residents.
Ohio’s data center surge faces local resistance
Ohio has 200 centers that are currently operational and around 100 more planned or under construction.
At least 18 Ohio communities have enacted or considered temporary moratoriums to pause development.
A group of state representatives, mostly Republicans, have proposed House Bill 646 to create a commission to study data center growth.
But Senate Democrats are planning a slate of bills to rein it in, including eliminating Ohio’s sales tax exemption for data center equipment.
FIFA World Cup US host cities to get $100M for public transportation
The Federal Transit Administration said last week it is making $100.3 million available to U.S. host cities.
This is for FIFA World Cup events to expand transit options around stadiums where events will take place.
New York needs more time to meet climate goals
New York needs “breathing room” in meeting a state law that requires 70% renewable energy and a 40% cut in state-wide greenhouse gas emissions by 2030.
The governor said the state’s emissions reduction goals have been hindered by factors including:
The COVID pandemic
The financial struggles the offshore wind industry encountered after 2020
Trump’s opposition to renewable energy
The ongoing energy affordability crisis
China
China Keeps Pushing Nuclear Power With Ambitious Growth Target
China has set a goal of 110 gigawatts of nuclear capacity by 2030, a 76% jump from the end of last year.
The country is prioritizing nuclear power for its around-the-clock reliability and carbon-free electricity, as wind and solar’s intermittent delivery strains the grid.
The latest goal may be missed unless facilities under construction are counted, with reactor construction timelines ranging from five to seven years.
UAE
Mohammed bin Rashid issues Law on the quality and safety of buildings in Dubai
The new law aims to ensure the quality, safety and sustainability of buildings in Dubai.
It does so by maintaining structural integrity, ensuring regular maintenance and supporting the safe operation of all systems.
It also seeks to enhance occupant comfort, reduce accidents, protect lives and property, and preserve the emirate’s urban identity.
Dubai Municipality is responsible for ensuring building safety and quality by developing a digital management system and maintaining a unified building database.
They will conduct periodic assessments, set standards for sustainability, and implement measures and procedures to safeguard buildings, lives, and property.
Taiwan
Taiwan premier signals conditional return to nuclear power amid energy security concerns
Premier Cho Jung-tai used his policy address to signal a possible shift in the government’s stance on nuclear energy.
In his policy report, he stated that following amendments to the Nuclear Reactor Facilities Regulation Act, the Taiwan Power Company (Taipower) will submit plans to restart Nuclear Power Plant 2 and 3.
They will also begin self-implemented safety inspections.
South Africa
South Africa Targets Infrastructure Deals With Guarantee Fund
South Africa plans to expand a new credit-guarantee vehicle to support infrastructure projects, including power-grid expansion and water systems.
The program is designed to mobilize private capital while limiting pressure on the state, and is expected to mobilize up to four times its initial $500 million in capital.
National Infrastructure Projects & Priorities
China
China’s power grid investments to surge to record $574 billion in 2026-2030
China’s State Grid will spend 4 trillion yuan ($574 billion) to upgrade the country’s power grid between 2026 and 2030.
That is a 40% jump in fixed-asset investments from the previous five-year period.
The funding will go towards shoring up China’s west-to-east power transmission network.
India
Construction of three seaports will be completed by end of 2026
Andhra Pradesh was poised to ramp up its maritime handling capacity by completing the construction of three by the end of 2026.
Ramayapatnam port is poised to be completed by the end of April 2026, Mulapeta port by November 2026 and the Machilipatnam port towards the end of 2026.
The APMB is bearing the cost of land acquisition under the ‘landlord model’ and construction of the essential rail and road links.
India Crosses 520 GW Installed Power Capacity
India has surpassed 520 GW of installed power capacity, with more than half of generation coming from non-fossil fuel sources.
Rapid growth in solar capacity has more than tripled in recent years.
India has set a target of achieving 500 GW of non-fossil fuel capacity by 2030 and remains committed to reaching net zero emissions by 2070.
UK
UK construction sector extends longest run of decline since global financial crisis
Activity in Britain’s construction sector contracted for the 14th month in a row in February.
Falling order books were blamed on a mix of sluggish market conditions, “exceptionally wet weather”, and the steepest rise in cost pressures since July 2025.
Kenya
World Bank Plans $500 Million to Upgrade Kenya’s Commuter Rail
The World Bank has earmarked $500 million to rehabilitate the commuter rail network in Kenya’s capital.
The project, which is at the concept review stage, will include upgrades to stations, the purchase of rail carriages and other infrastructure investments in Nairobi.
The total cost is estimated at $1.7 billion.
Acquisitions
TrueBuilt, a Californian startup focusing on preconstruction and providing takeoff and estimation services, acquired Capabuild, a San Francisco startup building a mobile field documentation and reality capture platform for restoration and mitigation contractors. More here.
Notes:
The acquisition is intended to connect Capabuild’s high-fidelity jobsite data capture to TrueBuilt’s AI estimation engine.
News
Four people trapped after Nairobi building collapses, rescue operations ongoing
The government’s freeze on nuclear energy is thawing
What Autodesk did very well. (KP Reddy)
Adding Up What Urban Highways Really Cost
Procore Announces Chief Financial Officer and Chief Revenue Officer Leadership Appointments
The Real Reason California Can’t Build (The Atlantic)
BlackRock Donates $100 Million to Trade-Worker Training in Infrastructure-Investing Push
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.