Last Week in ConTech - 17 March 2025
How OpenAI’s AI Action Plan Could Reshape Construction
Deep Insight: How OpenAI’s AI Action Plan Could Reshape Construction
A few weeks ago the White House requested public comment for an AI Action Plan arising from an executive order aimed at ‘removing barriers to American leadership in AI.’ It asks the Office of Science and Technology Policy to submit an action plan within 180 days.
It's interesting as this week OpenAI submitted their policy proposal and it showcases the rapid acceleration of AI improvement and the resultant impact on the construction sector. What was most noticeable was how clearly OpenAI described the threat of Chinese AI:
As America’s world-leading AI sector approaches artificial general intelligence (AGI), with a Chinese Communist Party (CCP) determined to overtake us by 2030, the Trump Administration’s new AI Action Plan can ensure that American-led AI built on democratic principles continues to prevail over CCP-built autocratic, authoritarian AI.
It has never been clearer that we are entering a new cold war and instead of armies, we now have atoms and bits powered by physical computing infrastructure. Summarizing key takeaways which relate to construction:
The intelligence of an AI model roughly equals the log of the resources used to train and run it.
More computing infrastructure = better AI.Open AI proposes a National Transmission Highway Act
Transmission lines can take 10 years or more to complete as the process of obtaining planning, permitting and paying for approvals from federal, state, local and tribal authorities disadvantages the American AI industry.Open AI proposes AI Economic Zones
Created by the government, these areas would have streamlined permitting for building AI infrastructure like solar arrays, wind farms and nuclear reactors including creating categorical exclusions to the National Environmental Policy Act on national security grounds.There’s an estimated $175 billion of global funds awaiting investment in AI projects
The US must attract these funds to ensure they do not flow into China backed projects.
Ultimately, if parts of this are adopted, it would mean a continued rise in the construction backlog for AI infrastructure. Most notably, OpenAI has broadened the definition of AI infrastructure to include data centres, the renewable energy sources which power them and the transmission infrastructure to connect it.
Lastly, throughout the policy document is the clear signalling towards the geopolitical importance of American AI leadership. There is a tiered strategy for the export of American AI to alliance countries which appears reflective of how the US defence industry is allowed to export military equipment. If AI is classified as a national security imperative rather than a breakthrough in technology (e.g. traditional Big Tech - Meta, Microsoft etc) the grounds for aligned federal policy to support investment in construction is much stronger. At this rate, the military industrial complex could start to impact the construction industry.
In this issue there are:
6 Startup Fundings
16 Policy and Regulatory Changes
7 New National Infrastructure Projects & Priorities
1 New investment funds
1 Acquisitions
6 News articles
48 new jobs posted - view here
Reading time: 13 mins
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Startup Funding
Building Decarbonization
Reshape Energy, a German startup, raised €5m in funding. They are creating an energy optimization as a service offering for commercial real estate owners including initial assessments, planning / design, financing, installation / construction and ongoing maintenance of the energy efficiency solutions. More here.
[View open jobs - 1 role in Operations]
Notes:
Reshape Energy is going to market via an acquisition model.
They are buying existing companies in the sector to shortcut customer acquisition and to bring key capabilities in house.
In doing so, they believe they can offer efficiencies of scale while leveraging existing trusted relationships.
Additionally it allows them to break out of the ‘siloed workflows’ which typically characterize the sector as they emphasize the need for control as they want every acquired company to use common systems and technology.
To facilitate this vision they recently purchased an energy consulting business and a commercial solar planning, installation and maintenance company.
This approach is more capital efficient and contrasts to Reneo (which raised in February) which is purchasing real estate to increase its value by implementing energetic retrofits.
They also benefit by receiving a return from the real estate value increases.
Avani, an Australian startup, raised $4.4m in funding. They have developed a platform which is able to access data from any sensor regardless of system in any building to provide unified insights allowing owners to track and identify opportunities for energy optimization or building decarbonization policy implementation. More here.
[View open jobs - 1 role in Software]
Procurement
Bobbie, a German startup, raised €12.5m in funding. They operate an online marketplace for the procurement of building materials providing transparent pricing including freight as well as real time availability. More here.
Equip, a Peruvian startup, raised Seed funding (undisclosed). They are developing a digital materials distribution platform connecting small and medium sized construction companies with suppliers. More here.
Design
Augmenta, a Canadian startup, raised $10m in Seed funding. They are developing a platform for the automated design of sustainable buildings initially focusing on providing electrical conduit modelling, helping to quickly create coordinated clash free electrical systems. Their future roadmap includes design tools for the automation of MEP/S systems. More here.
[View open jobs - 1 role in Sales, 1 role in Marketing, 1 role in Finance, 1 role in Product, 1 role in AEC Modelling]
Notes:
In our podcast last week, Alice Leung mentioned that the adoption of AI will vary across the construction industry based on the scope of work.
Some can’t be replaced as personal touch or relationships will be required.
But for the guts of a building such as the duct work, no one cares where it is routed as it would work on predefined conditions such as clearance spaces.
Augmenta’s approach and initial roadmap appears to be a reflection of this thesis.
Renewable Energy
Terabase, a Californian startup, raised $130m in Series C funding. They have developed a solution combining robotics and AI for the digitalization and automation of utility scale solar power plants from preconstruction with solar energy modeling to design and construction management, monitoring and quality control as well as tools for the operational phase. More here.
[View open jobs - 1 role in Product, 1 role in Operations, 3 roles in Construction]
Notes:
Terebase have developed a plethora of solutions for the digitization of solar parks from land development and preconstruction through to operations and ongoing maintenance.
This is interesting to me as given the size of the construction industry, there are sub sectors which can support unicorn ($1b+) startups.
Examples of this are renewable energy, grid infrastructure or data centres.
The challenge with this is non-market risk.
Under the previous administration there was a focus on renewable energy development however under this administration, it is unclear if the incentives will be as strong as fossil / less green power sources may receive increased investment impacting the size of the market opportunity.
It’s an interesting risk dynamic and the more I write this newsletter, understanding policy and national priorities appears to be of increasing concern to the industry as we navigate an increasingly uncertain political and global environment.
Policy and Regulatory Changes
US
Climate coalition launches lawsuit against Trump freeze
A coalition of organizations granted $7 billion in federal funds for climate and housing projects is sueing the Trump administration and Citibank.
The $7 billion is meant to finance electric vehicle charging infrastructure, energy-efficient home construction and renewable energy projects.
The suit accuses the EPA of violating the Administrative Procedure Act, calling the agency’s suspension or termination of the grant arbitrary, capricious, an abuse of discretion or otherwise unlawful.
Notes:
This lawsuit could help to determine if the Trump administration’s claw back of Biden’s climate policies is legal, which impacts the backlog of infrastructure and construction work.
A Wave of Anti-Renewables Bills Hits State Legislatures
The article breaks down state level policies implemented or in the process of being implemented to reduce renewable energy projects.
Some examples include:
Oklahoma may as soon as this year enact mandatory setback requirements on wind power facilities.
Florida last year banned all offshore wind projects.
Ohio recently passed a law empowering localities to block solar and wind projects curtailing industry investment in the state.
Wisconsin Republicans are trying to enact similar legislation as soon as this year.
Missouri, Republican state legislators are advancing legislation that would create additional taxes for building solar projects on agricultural land.
DOT removes equity, environmental factors from IIJA funding decisions
The U.S. DOT has rolled back a Biden-era policy that included environmental and social considerations in federally funded infrastructure projects.
The move rescinds two Federal Highway Administration memos, issued in 2021 and 2023, both titled “Policy on Using Bipartisan Infrastructure Law Resources to Build a Better America.”
Trump moves to relax rules against killing migratory birds
The Interior Department has suspended a legal opinion that held companies liable for accidentally killing ducks, cranes, pelicans, owls and hundreds of other bird species.
This included one including one that subjected companies to penalties for accidentally killing birds through activities such as oil and gas drilling, wind energy production, mining or construction.
U.S. Environmental Protection Agency unfreezes $7 billion Solar for All grant program
Solar for All was in the process of distributing the grants when EPA Administrator Lee Zeldin announced that he sought to instantly terminate ~$20 billion in clean energy grant programs.
It has now been unfrozen by the Environmental Protection Agency (EPA) following a mandate to review Biden-era climate spending.
Facing competition from Big Tech, states dangle incentives and loosen laws to attract power plants
This article breaks down state level intentions and policies to attract new energy.
Some examples are:
The Pennsylvania Governor wants to establish an agency to fast-track the construction of big power plants and provide hundreds of millions of dollars in tax breaks for projects providing electricity to the grid.
Indiana, Michigan and Louisiana are exploring ideas to attract nuclear power.
Maryland lawmakers are floating ideas about commissioning the construction of a new power plant.
In Ohio, a lawmaker wants to restrict the influence of electric utilities in hopes of giving independent power producers more incentive to build power plants.
In Missouri industry stakeholders are backing legislation to repeal a law preventing utilities from charging customers to build a power plant until it is operational.
U.S. DOT Orders Review of All Grants Related to Green Infrastructure, Bikes
U.S. Department of Transportation Secretary has ordered officials to stop action on all Biden-era discretionary grants to build bike lanes and other "green infrastructure.”
This is so the agency can review the project for possible removal.
Washington state efficiency standards discouraging gas appliances prevail in federal court
Washington state regulations encouraging the use of electric appliances over gas appliances have withstood a legal challenge.
The building industry viewed the state’s energy regulations, which established minimum performance standards and requirements for construction and construction materials, as impossibly stringent.
They claimed the Energy Code improperly restricted the use of natural gas appliances in new residential and commercial construction.
It was struck based on the 11th Amendment, which prevents people from outside a state from suing the state in federal court.
Construction groups decry PRO Act’s reintroduction
The PRO Act, if passed, would alter the definitions of employee and employer, make it easier for workers to form unions and increase accountability for employers with labor violations.
The act is aimed at transforming the cement, concrete, and asphalt industries by promoting the research, development, and implementation of cutting-edge technologies to reduce emissions and improve performance.
Amazon, Google and Meta support tripling of nuclear capacity by 2050
Amazon, Google and Meta have joined a call by big, energy-intensive companies for governments and utilities to build more nuclear power.
EU
German election results tilt EU back toward nuclear energy
Germany has long opposed nuclear power at the EU level.
This has meant it has never gotten the same preferential treatment granted to carbon free options like wind and solar.
The expected new Chancellor, Merz, called the phaseout of nuclear power a ‘strategic mistake’ and said Germany should collaborate with France on producing advanced small modular reactors.
Diplomats expect Germany taking a softer approach would allow nuclear proponents to more easily steamroll less-influential atomic opponents like Austria and Luxembourg.
Canada
Feds unveil standardized designs to tackle housing crisis
The federal government on Friday released about 50 standardized designs for rowhouses, fourplexes, sixplexes and accessory dwelling units across the country.
The free designs can help builders “streamline the process from concept to construction, cutting costs and speeding up housing delivery.”
The Singapore Land Authority (SLA) today announced two strategic partnerships to harness space-based technologies and data to drive geo-enabled solutions to address climate mitigation and adaptation challenges.
It will broaden the use of space for earth technology and translate space based data into actionable insights to support Singapore’s goal of building a safe, sustainable, and smart city.
Notes:
This reminds me of an underground railway project that was apparently using satellite technology to track building displacement above ground.
If tunneling activities caused movement beyond acceptable limits, work would be stopped.
Italy
Italy Passes Law to Bring Back Nuclear Energy
Government officials in Italy have implemented a new law that allows for nuclear energy to return.
This is four decades after voters banned the technology in a 1987 referendum.
Italy is looking at advanced small modular reactors (SMRs) to produce nuclear energy.
UK
Graphene-enhanced mix is set to be tested in real-world conditions on a public road
The technology has been implemented at Flatts Lane Country Park near Middlesbrough.
It has the potential to extend the lifespan of asphalt, minimize pothole formation, and provide drivers with smoother, more durable surfaces.
Prior to its public deployment, the technology underwent rigorous testing in controlled environments, including test tracks in the United States and Canada.
Notes:
The process of going from Lab to Site use for a new product can be arduous and long.
The reason why is the high impact in terms of safety and cost if a key roadway fails.
Additionally, there can be a need to prove performance data over years of testing to confirm durability.
National Infrastructure Projects & Priorities
Global
The Moving World Report 2025 (Up Partners)
The report unpacks the shifts shaping the future of mobility, energy, AI, defense, space, and beyond.
Interesting takeaways for construction included:
Global
Modular reactors gain traction, while $153.5b floods into nuclear projects as global demand spikes.
US
U.S. factory construction investment soared by 40%, marking a peak in manufacturing activity.
SpaceX has slashed launch costs from $51,000/kg during the Space Shuttle era to potentially below $100/kg, democratizing space access.
Virginia now dedicates 26% of its power to data centers, prompting the approval of a Common Wealth Fusion reactor.
China
China is the first "electrostate," which uses electricity for over 30% of final energy consumption, a metric that includes things like gas for heating appliances and petrol for cars.
With 1,206 GW of installed solar and wind capacity, China hit its 2030 target six years early. The country alone accounts for two-thirds of global wind and solar projects under construction.
Asia
Malaysia is scaling up as Asia’s data hub, boosting capacity tenfold by 2026, with Johor leading the charge.
US
BlackRock's Panama Canal deal isn't a sure bet
BlackRock's $22.8 billion agreement with CK Hutchinson covered sales of two ports on either side of the Panama canal as well as 43 more ports in 23 countries.
The deal would give a U.S. consortium control of key Panama Canal ports amid White House calls to remove them from what it says is Chinese ownership.
The Chinese government has now strongly criticized the planned deal warning that the deal would deprive China of needed influence over key shipping routes.
Related:
LNG player to expand Louisiana export facility
Venture Global LNG plans to expand its export facility in Plaquemines Parish, Louisiana with a ~$18b investment.
It will be North America's biggest LNG facility and is a clear sign of LNG's political priority in Trump 2.0.
Related:
UK
Virgin Group looks to raise £700mn to fund Eurostar rival
They plan to raise £300mn in equity and £400mn in debt.
This will be used for a high-frequency cross-channel service that would be the first direct rival to Eurostar’s 30-year-old network and could launch as soon as 2029.
It plans to launch services connecting London with Paris and Brussels, and then to extend to Amsterdam in the future.
BP cancels 'one of the biggest' green hydrogen projects in the UK
Oil major BP has cancelled plans for HyGreen.
This was previously envisaged as “one of the biggest green hydrogen production facilities in the UK” with 500MW of electrolyser capacity by 2030.
India
Mumbai Ring Road Project Gets $2.5 Billion Funding Commitments
This is part of Mumbai’s infrastructure ‘makeover.’
It involves 8 big road and rail projects amounting to almost $30b in spending.
Australia
Australia’s New South Wales to contract for almost 14GWh of long-duration energy storage
The Australian Energy Market Operator (AEMO) Services has revealed nearly 14GWh of long-duration energy storage (LDES) in the latest competitive tender.
In total, 1.03GW/13.79GWh has been awarded across two battery energy storage systems (BESS) and a pumped hydro energy storage (PHES) site.
Each successful project will be awarded a Long-Term Energy Service Agreement (LTESA) contract, which is designed to spur investment and lower the cost of project financing.
Investment funds
National Grid Partners, the corporate venture capital unit of National Grid, announced a commitment to invest $100 million in artificial intelligence (AI) startups that are advancing the future of energy. More here.
Notes:
They invest in critical infrastructure monitoring software such as AiDASH.
Acquisitions
Accenture, a global consultancy is to acquire Soben, a construction consultancy with a focus on data centre development and the pharmaceutical and energy industries. More here.
News
Skanska’s small business incubator has led to $740M in partnerships
Skanska USA started the Building Blocks program in 2007 to help smaller, diverse companies grow and manage business challenges as well as find opportunities to work for and with larger firms.
The free, multi week courses cover a variety of topics, including contracting methods, insurance bonds, safety requirements and sustainability.
The program has educated about 800 companies and led to approximately $740 million in contracts with Skanska.
How to Secure Your Projects Against Tariffs (The Influential Project Manager)
Agentic AI is the new tech buzzword. Here’s what builders need to know. (Construction Dive)
Natural gas is bottlenecked by a shortage in gas turbines.
It’s important as gas plants rely on turbines that burn natural gas to generate electricity and can be retrofitted with carbon capture to help lower emissions.
While the challenge is acute, the gas turbine manufacturers are not expecting persistent demand.
They are modestly increasing the manufacturing capacity as it is unclear what the long term need for natural gas will be in the energy mix.
Notes:
This will have an impact on the deployment and construction of gas plants.
Engie pulled out of two gas plant projects in Texas late last month due to equipment procurement constraints.
AEC FOUNDERS : Construction Companies Market Stats Key Insights (Mayur Mistry on LinkedIn)
75.2% of US construction companies have fewer than 10 employees
95.8% have fewer than 50 employees
99.3% have fewer than 500 employees
Only 40 companies (0.02%) have more than 5,000 employees
Companies with more than 1,000 employees represent just 0.1% of the market
What Went Wrong at Saudi Arabia’s Futuristic Metropolis in the Desert
In a sign of the massive ambitions of the Neom project, a draft board presentation from last summer pegged the capital expenditure required to build Neom to its “end-state” by 2080 at $8.8 trillion—more than 25 times the annual Saudi budget.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.