Last Week in ConTech - 20 January 2025
How Big Tech's data centre spending spree is driving construction robotics adoption
Deep insight: How Big Tech's data centre spending spree is driving construction robotics adoption
For years, construction robotics struggled to gain traction due to challenges in funding and finding practical use cases. That’s now changing, due to a renewable energy boom fueled by Big Tech’s AI requirements.
Over the last year Big Tech has become one of the largest construction clients, driven by demand for AI-specific data centres. In 2025, the planned spend is to exceed $100 billion.
The challenge is that these data centers are more energy intensive, with an AI query using 10 times more energy than a traditional search.
To meet climate goals and regulatory requirements for new data centres, tech companies are supporting clean energy projects. This leaves them with three primary options for energy:
Nuclear
This is seen as the most reliable clean energy source but with long lead times. They’ve invested in new small modular reactors (Amazon, Google) but these won’t come online until the 2030s. In the meantime they’re purchasing existing capacity or restarting decommissioned plants.Wind
Offshore wind was a key focus of the Biden administration however they estimates suggest they will fall short of their 30GW target for 2030, with only 14GW expected. Further complications will arise as Trump seeks to pause development.Solar
Solar is the most viable option as it is the easiest and fastest to scale. In the first seven months of 2024, solar accounted for 76% of new energy capacity in the US. The challenge is the industry is projected to be short 475,000 workers by 2033 driven by difficult conditions such as remote work sites and hot weather.
This labor gap in solar combined with high demand and willingness to pay from Big Tech has provided an opportunity for construction robotics to be adopted. On solar construction projects they are being deployed for tasks such as:
Material haulage: Transporting heavy solar panels and equipment.
Survey layout: Precisely marking thousands of layout points.
The demand has allowed startups like Swap Robotics, Civ Robotics, Planted Solar to gain traction and refine their solutions in real world conditions.
As these robotic systems mature (subsidised by Big Tech’s demand), they will become more cost-effective and widely adopted across the industry. The lessons learned here are setting the stage for broader use in other sectors, creating a ripple effect that could change how we build.
In this issue there are:
8 Startup Fundings
13 Policy and Regulatory Changes
9 New National Infrastructure Projects & Priorities
0 New investment funds
0 Acquisitions
8 News articles
38 new jobs posted - view here
Does the email get cut off by your reading application? You can view the full version online here.
Startup Funding
Design
Qbiq, an Israeli startup, raised $16m in Series A funding. They have developed an AI tool to automate architectural planning. Users such as brokers, landlords or architects can provide a simple input of requirements (e.g seat count, finish materials), and quickly generate optimized floor plans, 3D visualizations, quantity estimates and Revit / CAD models. More here.
[View open jobs - 3 roles in Software, 1 role in Finance]
Green Materials
Brimstone Energy, a Californian startup, received up to $189m in grant funding. They have developed a process to create green cement which replaces limestone (which accounts for ~60% of emissions) with highly abundant and carbon-free calcium silicate rocks. More here.
[View open jobs - 1 role in HR, 1 role in Legal, 1 role in Finance, 2 roles in Other]
Notes:
The funding will be used to build their first of a kind plant which will produce cement, supplementary cementitious materials and smelter grade alumina.
Renovation
Trustup, a Belgian startup, raised €5m in funding from investors including Brick & Mortar Ventures. They have developed a marketplace platform which connects individuals with pre-vetted and certified construction and renovation professionals. This provides enhanced contract security for individuals and they provide administration tools for professionals (quotes, invoicing). More here.
[View open jobs - 1 role in Software, 1 role in Design, 4 roles in Sales, 1 role in Marketing, 1 role in HR]
Construction Management
Opteam, a Dubai startup, raised Pre-Seed funding (undisclosed). They have developed a construction management tool assisting with tasks such as progress tracking, predicting potential delays and optimizing the schedule. More here.
Digital Twin
Varadise limited, a Hong Kong startup, raised $3m in Series A funding. They have developed digital twin technology which acts as a centralized management platform from the start of a building’s lifecycle (construction phase), allowing users to integrate IoT sensors, visualize their jobsite for remote control and safety as well as scenario planning. More here.
Notes:
Varadise offers a digital twin solution that spans the entire lifecycle of a building, covering both the construction and operations phases.
This contrasts with most platforms, such as Willow, which focus solely on the building operations phase.
During the operations phase, these platforms typically generate revenue through subscription fees, assisting building owners with tasks like energy optimization, HVAC control, and predictive maintenance.
A key challenge for such platforms is data quality, as they rely on building owners to provide data, which may be incomplete or missing critical details such as material supplier information or warranties.
By focusing on the full lifecycle, Varadise could capture procurement and quality data for every material used during construction.
During the handover phase, if contractors adopted their solution in construction, Varadise could sell the client (building owners) with a fully-integrated smart building digital twin, leveraging the data already collected for a low set up fee.
This approach enables Varadise to generate revenue during both the construction phase and the operations phase, creating a long-term, sticky subscription model.
Logistics & Emissions reporting
Shippeo, a French startup, raised $30m in funding. They offer real time shipment tracking across transport modes, helping users reduce logistics related carbon emissions by making informed tradeoffs between modes and carriers based on carbon footprint data. More here.
Notes:
Scope 3 emissions refer to emissions from supplies and supply chains such as organizations supplying goods and services.
This can include emissions from the delivery and transport of building materials to site.
The SEC initially required Scope 3 emissions to be tracked as part of their draft climate rules proposed in March 2022 but these were dropped in February 2024.
Shippeo’s solution lists building materials as an industry use case and could assist when Scope 3 emissions must be reported.
Fleet Management
Netradyne, a San Diego startup, raised $90m. They have developed an AI enabled dash cam that improves driver safety and reduces accidents by providing real time notifications if drivers are distracted as well as monitoring vehicle diagnostics and enabling proactive maintenance. They have gained traction in the concreting and construction sector. More here.
GridTech
Gridware, a San Francisco startup, raised $26.4m in Series A funding. They have developed AI powered sensors which monitor power lines for mechanical issues and hazards supporting faster rectification and resolution. More here.
[View open jobs - 6 roles in Software, 9 roles in Other]
Notes:
I generally don’t post about GridTech but after a recent discussion, it was noted that this is a subset of Infrastructure Tech / Construction Tech.
The reason why is that updating and constructing new grid infrastructure will be one of the defining trends of the next decade.
Due to climate goals we have changed how we supply – our grid infrastructure was designed for centralized scalable power generation (power plants) but the new grid is different.
Renewables are intermittent (you can’t create solar on demand) and the grid is increasingly distributed (local solar / batteries) resulting in an ‘orchestration’ (coordination) problem.
At the same time electrification is increasing demand (electric cars, heat pumps instead of gas boilers).
To compensate for this we are building renewable energy as fast as possible but the real challenge is linking the grid.
Building new grid infrastructure has permitting challenges (it takes ~4 years to move through the interconnection process) meaning we need solutions to expand the capacity / improve reliability of our existing infrastructure.
Where these solutions overlap with Infrastructure or Construction Tech, I’ll include them here.
Policy and Regulatory Changes
US
Biden vows to speed permitting for data centers, clean energy
President Joe Biden issued an executive order designed to speed the construction of new data centers and the energy infrastructure needed to power them.
The order will make federal sites available for AI data centers and new clean power facilities.
The Department of Energy and Department of Defense will be tasked with selecting federal sites that can be leased to companies to build “gigawatt-scale” data centers.
The Department of the Interior will identify available lands to build “clean energy infrastructure” to support the new data centers.
Los Angeles Officials Pass Regulation to Expedite the Rebuilding Process
Two executive orders have been issued to expedite the rebuilding process.
They are intended to remove significant regulatory hurdles and expedite project approvals.
Executive Order N-4-25 temporarily pauses state environmental regulations including:
Suspension of the California Environmental Quality Act (CEQA) review and the California Coastal Act permitting for reconstruction in affected areas.
It also mandates that state agencies identify additional permitting and building code requirements that can be safely streamlined or suspended to further facilitate and reduce the cost of rebuilding.
To address potential cost increases for rebuilding materials and services, the executive order extends price-gouging protections until January 7, 2026, in Los Angeles County.
Los Angeles Mayor Bass's initiative complements the above and mandates that city departments complete project reviews within 30 days of receiving complete applications.
The order also allows for reconstruction up to 110% of the original building footprint and height.
Related:
This California Neighborhood Was Built to Survive a Wildfire. And It Worked
If homeowners don’t comply with fire protection rules, the district will hire a contractor to clear the vegetation, and the homeowner will get the bill.
Nearly $5 Billion Announced for 560+ Community-Led Projects in all 50 States
The funding is to:
Improve passenger and freight rail safety and strengthen supply chains across 41 states.
Strengthen intercity passenger rail service on six routes across the country.
Reconnect communities that were cut off by past transportation infrastructure decisions.
Invest in critical surface transportation infrastructure projects with significant local or regional impacts.
Continue modernizing critical airport infrastructure and systems.
Improve and expand surface transportation infrastructure in rural communities
Expand zero-emission EV Charging and refueling infrastructure nationwide.
Related:
Big building owners sue Maryland over efforts to make them go green
Maryland put into place new regulations designed to reduce carbon emissions from large buildings and now a coalition has filed a lawsuit against it.
The new Maryland building emissions standards, which took effect before Christmas, applies to buildings of at least 35,000 square feet.
Large buildings would need to achieve a 20% reduction in greenhouse gas emissions in the next five years and reach net-zero emissions by 2040.
USDA awards $6B to rural clean power initiatives
More than $6 billion will be awarded to help rural communities build renewable energy projects.
The grants and loans will primarily be used to build new wind, solar, and battery facilities, though some winning proposals also include hydropower and nuclear.
Trump’s Offshore Wind Ban Is Coming, Congressman Says
President-elect Donald Trump’s team is drafting an executive order to halt offshore wind turbine activities.
The proposed order is expected to be finalized within the first few months of the administration.
Help Wanted: U.S. Factories Seek Workers for the Nearshoring Boom
73% of U.S.-based executives said their companies have brought or are bringing back more of their supply chains to the Americas because of geopolitical and economic uncertainty.
Instead of relying on a single country, such as China, companies are moving toward regional models.
Factories in Europe or North America are to supply a greater share of products for those markets.
The strategy shortens global supply chains and, in theory, reduces the risk of shocks such as trade wars, geopolitical conflicts and sudden price spikes or bottlenecks in supply chains.
Notes:
Under Trump this trend is likely to continue and will have an effect on manufacturing construction spending and investment.
US Census data shows manufacturing construction spending was ~$236m in November 2024, up 11% from November 2023.
DOT announces $635M in EV charging, other clean transportation grants
The grants will be used to build out electric vehicle charging and other clean transportation infrastructure across 27 states, four tribal areas and the District of Columbia.
They will help install more than 11,500 EV charging ports and hydrogen and natural gas fueling infrastructure.
EPA Proposes Updated General Clean Water Act NPDES and Construction Permits
The EPA proposed a narrow modification to its 2022 Construction General Permit for Stormwater Discharges (CGP).
The CGP covers stormwater discharges from regulated construction activities in areas where EPA is the permitting authority
The proposed modification clarifies requirements for projects discharging to receiving water within the Lands of Exclusive Federal Jurisdiction.
Operators of such projects would follow the same requirements as used in the CGP for discharges to sensitive waters.
China
China has a new sweeping energy law. Here’s what you need to know.
This law affirms how the country should plan, develop, use and store various types of energy.
It prioritizes renewable energy development but also promotes the exploration of domestic oil and natural gas.
In addition, it stresses the importance of using coal “cleanly and efficiently.”
The law also encourages the energy sector to adopt more market-based measures in pricing, trading and financing and to support more technological innovations.
Notes:
The law prioritizes renewable energy but also has provisions for planning of the construction of coal fired power plants.
This is likely due to rising geopolitical tensions.
Between the mid-2010s and 2021, China limited approving new coal power plants.
After power shortages and the European energy crisis due to the Russia-Ukraine war, they permitted 5x the coal power capacity compared to 2021.
Finland
The new Construction Act enters into force on January 1
The law requires the submission of a climate report in order to obtain a building permit.
Specifically, the carbon footprint and carbon handprint of a new building or a building subject to extensive renovation requiring a construction licence must be reported.
In practice, this means that all companies that supply products in the construction industry will have to report the carbon footprint and carbon handprint information of their products.
Portugal
Portugal turns its back on nature restoration with new building law
Municipalities can now convert so-called 'rural zones,' which include national reserves, forests and agricultural areas, into urban land.
Azerbaijan
Azerbaijan expands bicycle paths up to 100 km with micromobility services
35 km of bicycle paths have been created on 31 streets and avenues, with plans to increase this to about 100 km in stages.
Legislation in the field of micromobility has been improved, with the inclusion of concepts like small electric vehicles and their operators, as well as enhanced control measures in this area.
National Infrastructure Projects & Priorities
US
Climate-friendly electricity sees big battery projects soar again for 2024
Battery storage in the US has doubled in less than 2 years.
As of November 2024, nearly 90% of the utility-scale storage capacity was in California, Texas, Arizona and Nevada.
The country has ~24 gigawatt-hours operating as of the end of November, up 71% over the same date in 2023.
California unveils $310B passenger rail plan
The plan is to create a fully connected, zero-emission passenger rail network across much of the state by 2050.
The proposed state rail plan includes intercity, regional and local transit systems, with high-speed rail projects serving as the spine of the far-flung network.
Biden administration offers utilities $22.4B to cut energy costs — and emissions
The Biden administration announced $22.4 billion in loans for eight U.S. utilities across 12 states.
As Trump’s presidency looms, this may be the last act for an Inflation Reduction Act program meant to offer low-cost financing for big energy projects.
China
China's State Grid outlays record $88.7 bln investment for 2025
China's State Grid will invest a record over 650 billion yuan ($88.7 billion) in the country's power grid this year.
It is focusing on optimising the power grid, strengthening distribution infrastructure and providing for the high-quality development of renewable power.
This comes as experts warn grid infrastructure could be overwhelmed due to the massive buildout of renewables.
State Grid is also building massive long-distance ultra-high voltage (UHV) transmission lines to bring power from mega-bases in western China to the country's population centres
UK
UK unveils £14B AI infrastructure plan
The initiative will establish dedicated "AI growth zones" across the country, designed to streamline planning processes and enhance data centre access to power grids.
The first AI growth zone will be established in Culham, Oxfordshire.
The plan has attracted private sector interest, with combined investment commitments reaching approximately €16.3 billion from two key players.
India
India adds record 24.5 GW of solar in 2024
India added 24.5 GW of solar and 3.4 GW of wind capacity in 2024.
This doubled solar installations and increased wind capacity by 21% from 2023.
US$3.66 billion of new roads for Rajasthan
This will extend the state’s network by 800km.
Africa
US$15 billion West African highway link
The highway will run for a total distance of 1,028km and connect Nigeria’s commercial centre, Lagos, with the capital of Côte d'Ivoire, Abidjan.
Construction work is due to commence in 2026.
China gets major Nigeria rail project back on track by granting key loan
China Development Bank, a major policy bank, announced that it would grant an initial €245 million (US$253.7 million) tranche of funding for the Kaduna-Kano rail project.
This is part of a larger rail corridor linking Nigeria from north to south.
News
The State of AEC-Tech in Q4 2024 (Foundamental)
How Pixar’s USD Sparked a Debate in AEC: What Can We Learn from Hollywood? (Christopher Diggins)
Betting on Building: The Venture Capital Opportunity in AEC Technology (AEC Technology Guy)
5 construction-related announcements from CES (Construction Dive)
HVAC investors eye M&A uptick in 2025
A Blueprint for Better Bike Lanes (Bloomberg)
Why Skyscrapers Became Glass Boxes (Construction Physics)
NYC’s high-end office market scores record year for new leases that top $200 per square foot
The city recorded a total of 30.2 million square feet leased, marking a 19.4% increase from 2023 and the highest since 2018.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.