Last Week in ConTech - 24 February 2025
Do we need all these data centres?
Deep Insight: Do we need all these data centres?
This week, speculation swirled around the future of AI-driven data center expansion.
A commentator on twitter mentioned that Microsoft may be cancelling leases in the US with at least 2 data centres providers and attempting to renege on existing power purchase agreements.
If true, this would be one of the first signs of hesitation from a major cloud provider amid the AI infrastructure boom.
It comes after the abrupt rise of DeepSeek, a Chinese AI model claiming greater efficiency than rivals at a fraction of the training cost. It adds uncertainty to analysts gaming out data centre power demand growth.
Data centres are seen as a critical US market for energy firms (and construction companies) ranging from small modular reactor startups to incumbent utilities. Electricity needed to train and use AI models have played an outsize role in driving demand and increasing power generation and transmission infrastructure spending.
DeepSeek demonstrated that training high performance models could take far less electricity than previously assumed.
Despite this, AI infrastructure spend continues to accumulate around the world.
Big Tech (Amazon, Alphabet, Meta and Microsoft) forecasted $300b+ in CapEx for 2025.
The White House has announced an up to $500b AI data centre initiative.
Reliance in India is planning the world’s largest data centre.
Investors in South Korea plan up to $35b for a 3GW data centre.
The EU launched a €200b InvestAI initiative.
All these announcements are combined with the nearly 4,750 data centres under construction in the US and this unprecedented amount of infrastructure spend hinges on a simple assumption: Better AI models require more computational infrastructure.
If efficiency breakthroughs continue, will this level of infrastructure spending still make sense? Or are we on the verge of a shift in AI economics.
In this issue there are:
14 Startup Fundings
1 Startup emerged from stealth
13 Policy and Regulatory Changes
7 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
3 News articles
34 new jobs posted - view here
Reading time: 10 mins
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Startup Funding
Scheduling
Nodes & Links, a London startup, raised $12m in Series B funding. They are developing an AI powered schedule management platform which automates progress tracking and change control including the ability to discover what caused delays. More here.
[View open jobs - 1 role in Sales, 1 role in Data]
Green Materials
Terra CO2, a Colorado startup, raised $82m in Series B funding. They develop low carbon building materials with the goal of creating a net zero cement and are first making and selling low carbon supplementary cementitious material that can be blended with traditional cement. More here.
Notes:
The funding will be used to build their first commercial plant in Cleburne, Texas.
The plant will be able to make a quarter of a million tons per year of its supplementary cementitious material to be blended to produce low carbon cement.
Reality Capture
Planitar, a Canadian startup, raised funding (undisclosed). They have developed a camera system which allows users to easily scan a property and convert this into DWG or RVT files to be shared with architects and designers for purposes such as remodelling or restoration. More here.
[View open jobs - 1 role in AEC Modelling, 2 roles in Software, 1 role in Marketing, 1 role in Sales]
Business Management / Trades
Handly, a German startup, raised €3.75m in Seed funding. They are building a business management platform for home services companies, helping them to establish and manage operations through services such as website creation, lead generation, administrative automation (e.g. bookkeeping), scheduling, staff management, legals and more. More here.
[View open jobs - 2 roles in Software, 1 role in Operations]
Workforce Management
MyPass, an Australian startup, raised $7.5m in Series A funding. They have developed a software platform which verifies the credentials of workforces via a ‘Skills Passport’ where workers provide qualifications and credentials gaining traction in industries such as construction and mining. More here.
[View open jobs - 2 roles in Customer Success, 1 role in Operations, 1 role in Software]
Building Decarbonization
Reneo, a German startup, raised €45m in funding from investors including Foundamental. They provide an end to end solution for the decarbonization of apartments and multi-family homes using proprietary software to identify the most efficient transformation path for a property, balancing factors such as energy savings, renovation costs, government subsidies, and asset value appreciation. More here.
[View open jobs - 1 role in Software, 1 role in Operations]
Deutsche Sanierungsberatung, a German startup, raised €3.6m in seed funding. They are developing a platform to help homeowners plan renovation works to decarbonize their homes. The company acts as an independent advisor, guiding owners through options, applying for grants and connecting them to local trades. More here.
Inspections & Maintenance
Unusuals, a Spanish startup, raised €1m in Seed funding. They provide AI solutions to automate the maintenance and condition monitoring of linear structures in the electrical (e.g. solar, wind farms, power lines etc) and railway industries for infrastructure owners to automate tasks such as inspections. More here.
Supply Chain Decarbonization
Proba, a Dutch startup, raised €1m in funding. They help companies reduce emissions within their own supply chains by certifying and quantifying decarbonization efforts, creating verifiable, tradable certificates which can attract co-financing. More here.
Notes:
Traditional carbon offsetting is the process of compensating for emissions by investing in external environmental projects that reduce or remove carbon elsewhere.
For example, instead of reducing emissions in your construction project, you invest in tree planting in another country.
Insetting, on the other hand, refers to reducing carbon emissions within a company’s own operations or supply chain.
An example of insetting is switching to low-carbon materials (e.g. green concrete) or electrified machinery instead of relying on fossil fuel-powered equipment.
Proba’s platform helps companies track insetting activities (such as internal decarbonization projects) and convert them into tradable Impact Units (credits).
This allows companies to monetize sustainability efforts while also simplifying ESG reporting and regulatory compliance.
Their service has initially focused on agri-food but they are now providing services to the Sustainable Construction Material sector.
Grid Infrastructure
Hepta Airborne, an Estonian startup, raised €2m in funding. They provide a full service energy inspection platform, automating the analysis of power lines by using drones, helicopters, satellites and analyzing it to automatically detect defects in power lines. More here.
Planning
PlanningHub, a UK startup, raised £300k in funding. They have developed an AI powered platform which provides planning insights for property developers examining the site address and project scope to provide site specific summaries and planning guidance, speeding up the planning application submission and permission process. More here.
[View open jobs - 2 roles in Software]
7Analytics, a Norwegian startup, raised €4m in Seed funding. They have developed an AI solution which provides high precision flood and landslide prediction which is used by governments, asset owners, architects and engineers to design more resilient infrastructure and undertake scenario analysis to optimize adaptations. More here.
Climate Risk Mitigation
Faura, a Californian startup, raised $3.5m in Seed funding from investors including Building Ventures. They have developed resilience models for insurers which analyze individual structures on their level of survivability of natural disasters and offer tailored mitigation plans. Policyholders can complete self-assessments to qualify for discounts, grants and other benefits based on mitigation work. More here.
Notes:
CNBC highlighted recently in the wake of the LA fires that property owners are recognizing that they must make changes to improve resiliency, maintain insurability, and lower costs for their properties.
Contractors can partner with startups like Faura to receive a consistent book of work through the execution of tailored mitigation and climate adaptation plans.
Other
Dream, an Israeli startup, raised $100m in funding. They provide AI powered cybersecurity for nations and critical infrastructure such as hospitals, energy and transportation grids. More here.
Notes:
As we move to the more interconnected and digital world, the cyber security practices of critical infrastructure are increasingly important.
In April 2024, the U.S. government released a playbook designed to help companies safeguard the nation’s critical infrastructure.
Out of Stealth
Partao, a Luxembourg startup, emerged out of stealth. They are building a platform for sourcing parts for agricultural and construction machinery. View their website here.
Policy and Regulatory Changes
Global
Grids must keep pace with rising power demand
IEA analysis shows that global power demand in 2040 could reach a level requiring another 50 million kilometres of grids.
It would require building in the next 15 years the same amount of grids built in the previous 40 years.
Additionally 30 million kilometres would need to be refurbished.
In 2024, 1 out of every 8 dollars invested in the global energy system was allocated to grid investment.
By 2030, it would need to reach 1 in 6 dollars, in order for countries to meet their goals.
US
SEC Acting Chair Cedes Fight Over Climate Disclosure Rule
The US Securities and Exchange Commission (SEC) indicated that the agency would no longer defend in court its own climate risk disclosure rule.
This rule would force public companies to report the potential financial impacts of extreme weather events and adaptation efforts.
The rule was expected to apply to 2,800 U.S. companies and 600 non-U.S. firms.
Notes:
Large public construction companies may have been impacted by this rule.
White House launches ‘energy dominance’ council to promote fossil fuels
The group is tasked with centralizing the nation’s energy policies.
It underscores Trump’s position that American energy production is a pressing national security issue.
Notes:
This will have an impact on the construction of new energy infrastructure.
Trump Administration Moves to Fast-Track Hundreds of Fossil Fuel Projects
The U.S. Army Corps of Engineers has created a new class of “emergency” permits for fossil fuel projects.
The move could reduce the opportunities for the public and local officials to weigh in on the effects of proposed projects.
Any individual, company or federal or state agency that wants to build a project in navigable waters of the United States, or discharge anything into those waters or wetlands, needs a permit from the Army Corps of Engineers.
Emergency permits have previously been issued to quickly repair roads, shipping channels and other facilities that have been destroyed by a hurricane or other calamity.
Trump administration drops work on stronger building codes for disasters
FEMA is dropping out of the latest effort to improve building codes.
They have historically helped develop building codes, construction standards that help houses survive hurricanes, wildfires and earthquakes.
White House claims authority over FERC, other independent agencies
Due to a new executive order, agencies must submit proposed regulations for White House review and agency policy must align with presidential priorities.
This includes fences such as the Federal Energy Regulatory Commission and the Securities and Exchange Commission.
FERC currently has 15 planned regulations in the pre-rule and proposed rule stages, including proposals dealing with transmission incentives and dynamic line ratings.
States are moving forward with Buy Clean policies despite Trump reversal
Nine states have enacted Buy Clean laws to boost demand for lower-carbon steel, concrete, asphalt, glass, and other industrial products.
California enacted the nation’s first such policy in 2017, followed in subsequent years by Oregon, Colorado, Washington, New York, New Jersey, Maryland, Minnesota, and Massachusetts.
The Biden administration launched the Federal-State Buy Clean Partnership in 2023 to build upon existing efforts and accelerate the U.S. market for cleaner construction materials.
This was abandoned by Trump.
The GSA Plans to Sell Hundreds of Its Federal Government Buildings
Employees at the General Services Administration (GSA) have been told to sell off 500-plus federal government buildings across the US.
The GSA buildings have been designated as “core” or “non-core” assets.
Of the more than 1,500 assets identified on the list, over 900 are designated as “core” and are thus protected from sale.
The “core” designation applies to buildings like federal courthouses, border inspection stations, or law enforcement facilities.
DOT rescinds approval of New York congestion pricing plan
Transportation Secretary rescinded the Federal Highway Administration’s approval of New York’s congestion pricing program.
This program was to be used to fund capital improvements to the Metropolitan Transportation Authority’s network including the subway and bus network.
Judge won’t compel state panel to scrap building codes targeted by gas initiative
The Building Industry Association of Washington spearheaded the effort to pass Initiative 2066.
This amends and repeals regulations and laws intended to move Washington state away from natural gas and toward technology like electric heat pumps in new construction.
A judge dismissed a lawsuit that sought to force the state Building Code Council to move faster in changing the regulation.
Meanwhile, a lawsuit to invalidate the entire voter-approved initiative is proceeding in King County Superior Court.
Notes:
This is another example of the challenges in implementing building decarbonization regulations in the U.S.
In the U.S., regulation typically starts at the municipal level, then moves to the state, and finally to the federal level.
This approach seems to serve as a gauge of public opinion and political sentiment.
However, the fragmented nature of this process invites litigation, making it incredibly difficult to implement policy at scale.
Who Should Pay to Fix the Sidewalk?
Denver has made sidewalk upkeep a public responsibility.
They have become the largest US municipality to fund and maintain this pedestrian infrastructure.
Most property owners will pay a $150 fee for sidewalks per year.
A small minority with more than 230 linear square feet facing the street will pay $3.50 per additional square foot.
The goal is to build and improve more than 1,000 miles of pavement within a decade.
China
Shenzhen launches China's first standard system for electric vehicle supercharging facilities
This is China's first guidelines for the construction of EV supercharging facilities standard system.
They cover various aspects of EV supercharging facilities, including planning, construction, and operation, providing comprehensive guidance for the standardized construction of these facilities.
Korea
Korea prepares to finalize energy laws alongside new electricity plan report
There are three energy laws which are to be proposed:
The 'Framework Act on the Expansion of the National Power Grid'.
This specifies the support system for the establishment of long-distance transmission networks and installation of transmission and transformation facilities.The 'Special Act on High-Level Radioactive Waste Management'.
This legally supports the construction and operation of storage facilities for 'high-level radioactive waste'.The 'Special Act on Offshore Wind Power'.
This promotes offshore wind projects under government-led site planning methods and streamlines the permitting process.
National Infrastructure Projects & Priorities
US
Feds approve another deepwater oil export terminal off Texas coast
The Trump administration last week approved plans for a second deepwater oil loading terminal off the Texas coast.
It’s the administration’s latest rejection of previous international agreements to move away from fossil fuels.
The GulfLink oil terminal will load up to 1 million barrels per day.
Trump restricts Chinese investment in American ‘critical strategic assets’
The memorandum instructs U.S. officials to restrict foreign investments in technology, critical infrastructure, healthcare, agriculture, energy, and other strategic sectors.
South Korea
AI Data Center With Up to 3 Gigawatts of Power Is Envisioned for South Korea
An investor group is planning one of the world’s largest data centers for AI.
If completed as envisioned, the data center will cost as much as $35 billion and pack up to 3 gigawatts of power.
France
France Taps Nuclear Power for New AI Training Cluster
The nuclear project, which aims to have a first tranche of 250 megawatts of power hooked up to AI-computing chips by the end of 2026, rivals the Stargate project in the U.S.
With a fleet of 57 reactors across 18 plants, France currently produces more than two-thirds of its electricity from nuclear power.
Related:
India
India Said to Plan Its First Offshore Airport North of Mumbai
The new airport will be constructed on an artificial island near the Vadhvan seaport on the west coast.
The project got initial approvals from federal environment and defense departments as well as the Maharashtra state government.
Singapore
Report claims Marina Bay Sands has secured record US$9 billion loan for Singapore expansion project
The funds will be primarily utilized to pay for the company’s US$8 billion expansion, which will see a fourth tower added to the existing MBS structure.
The loan is said to be the largest such transaction in Singapore’s history.
Notes:
Marina Bay Sands was always used as an example of engineering excellence / case study when I was studying to be a civil engineer.
Vietnam
Vietnam parliament approves $8 billion rail link to China
The route will stretch 390 kilometres (240 miles) from the port city of Haiphong to the mountainous city of Lao Cai, which borders China's Yunnan province.
It will also run through the capital Hanoi.
Vietnam says a feasibility study for the Haiphong-Lao Cai railway will begin this year and it wants the line finished by 2030.
Acquisitions
Anguleris, an Illinois company which enables product manufacturers and building professionals to work together more seamlessly, acquired Concora, formerly known as SmartBIM which helps building product manufacturers to get their building materials specified for use in commercial construction projects. More here.
News
Lendlease construction business slips into red
Revenue in the first half fell from £960 million ($1.9 billion) to £758 million ($1.9 billion).
This led the construction arm to generate an operating loss of £12.6 million ($25 million).
ABC: Construction Materials Prices Increase 1.4% in January, Up 40.5% Since February 2020
Global Robot Density in Factories Doubled in Seven Years
The global average robot density reached 162 units per 10,000 employees in 2023.
It’s more than double the number measured only seven years ago (74 units).
Notes:
If robots become widely accepted and cost-effective in manufacturing, it could increase comfort with automation in construction.
Additionally, countries with high manufacturing automation will likely develop strong robotics supply chains, making it easier to adopt in construction.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.
The AI infrastructure boom feels like an unstoppable force right now, but DeepSeek's efficiency claims throw an interesting wrench into the equation. If training costs drop significantly, will we see a shift from sheer computational brute force to more algorithmic optimization? Or will big tech keep doubling down on data center expansion just to stay ahead in the AI arms race? Exciting times
Brilliant overview!