Last Week in ConTech - 27 January 2025
AI data center construction emerges as the next battleground with China.
Deep insight: AI data center construction emerges as the next battleground with China.
This week brought a flurry of new announcements as Trump entered office. Among them was “Stargate,” a $100 billion initiative announced in partnership with OpenAI, SoftBank, and Oracle to build computing infrastructure (data centres).
It’s noteworthy as it signals a shift in US infrastructure policy driven by national security needs. We are seeing bipartisan support for AI data centre construction as it is seen as a critical battleground in technology advancement relative to China.
For the construction industry, it marks a new opportunity as firms adapt their strategies to meet growing demand. But how did we get here?
The policy shift began under Obama when he announced a ‘Pivot to East Asia.’ This led to an increased focus on China with Trump setting tariffs citing unfair trade practices and intellectual property theft. Then in 2018 the US government approved the National Security Strategy Indo-Pacific framework recognizing China as the primary strategic competitor in Asia.
As AI emerged as a transformative technology, the Biden administration sought to maintain US dominance. They first established funding for local chip manufacturing and domestic research via the $280 billion CHIPS and Science Act. Later they released the Framework for Artificial Intelligence Diffusion setting export and security standards for chips.
However, chips alone cannot meet the demands of an AI-driven economy. The US faces a critical shortfall in physical infrastructure—data centers, energy grids, and high-speed networks—needed to process AI models.
The announcement of Stargate is the next step. The group aims to invest as much as $500 billion in data centers over the next four years.
This unprecedented investment is reshaping the construction industry, creating opportunities for contractors to meet the surging demand.
For example, Clayco launched a division to focus on data centre construction. They have 57 active projects and generated $3.6 billion in revenue in 2024, up from $1.5 billion in 2023 and representing 50% of total revenue.
It underscores a broader trend. AI infrastructure is emerging as the next booming sector, fueled by both Big Tech’s demand and the government’s race to secure an edge in this critical industry.
Related: How I Would Build a Data Center in 2025 ()
In this issue there are:
13 Startup Fundings
12 Policy and Regulatory Changes
10 New National Infrastructure Projects & Priorities
0 New investment funds
0 Acquisitions
9 News articles
Check out FMC Talent’s ConTech Salary report in this section.
25 new jobs posted - view here
Reading time: 14 min
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Startup Funding
Construction Management
Kraaft, a Parisian startup, raised €13m in funding from investors including Brick & Mortar Ventures. They are building a ‘WhatsApp for construction’ which streamlines field and office operations through real-time group conversations, featuring tools to assist with project planning, automatic tagging of photos with timestamps and geolocation on an aerial map, safety checks and one-click auto generated reports. More here.
[View open jobs - 1 role in Sales]
Notes:
I love this idea because I’ve had the exact same thought while working on-site.
On one construction site, everything was managed through WhatsApp chats, including a dedicated group for expedited RFI approvals.
When an urgent issue arose, I’d capture a photo, annotate a plan to show the location, and provide context about the issue and the proposed action.
Instead of raising an RFI and waiting days for approval, all key stakeholders prioritized the group chat and gave immediate feedback.
At the end of the week, the Project Manager would go through the chat and compile the discussions into documentation, which was then sent via Aconex for record-keeping.
This app could save time by automatically geotagging photos, allowing access to plans directly from the conversation, and enabling simple message-based communication.
Everything could then be easily exported into the relevant report.
Side note:
I’m really interested in this solution as I believe a broader trend is communication shifting from email-based to messaging-based systems.
This is the first application I’ve seen that effectively captures this change by creating a system of record for messaging conversations—similar to how Aconex established a system of record for email communications as we shifted from letters (physical document management) to emails (digital).
Also–in the last month there have been 4 startup funding announcements from Brick & Mortar Ventures: Kraaft, Trustup, StruxHub, Buildpeer which collectively raised over $25m.
Home Services
Craftwork, a North Carolina startup, raised $7m in Series A funding. They have developed a solution for home painting which allows homeowners to receive instant painting quotes online and schedule their projects. More here.
[View open jobs - 1 role in Sales, 1 role in Software]
Notes:
Instead of selling their solution to the industry, Craftwork trains and hires painters into full time roles and allows them to handle the projects themselves.
This approach reflects a growing trend among ConTech startups, which are entering the market by creating technology-first contractors.
These startups build a competitive moat by delivering a superior customer experience through technology while training their own installers or subcontractors in their proprietary software.
It allows them to increase margins while offering services at lower costs compared to industry incumbents.
Supply Chain
Kaya AI, a New York startup, raised $5.3m in Pre-Seed funding. They are developing a construction supply chain intelligence platform which uses AI to provide insights and assist with tasks such as lead time tracking, submittal management and last mile scheduling and coordination. They are initially focusing on data centre and mission critical infrastructure projects. More here.
Infra.Market, an Indian startup, raised $121m in pre-IPO funding. They offer a one stop shop for construction materials and products marketplace combining an asset-light procurement and distribution network with a curated supply chain of manufacturers. More here.
Related:
The Future of construction marketplaces - Foundamental
Infra.Market - The outlier writing a new playbook - Shubhankar Bhattacharya
Compliance
CodeComply.AI, a Miami startup, raised $2m in Seed funding. They have developed an AI compliance tool which reviews plans submitted by architects, contractors, developers and permit expediters to ensure they are building code compliant as well providing tools for public building departments to review plans more efficiently. More here.
Mechanical, Electrical and Plumbing
Stratus, a Colorado-based startup, has raised $32M in Series B funding. They have developed a digital platform for Mechanical, Electrical, and Plumbing (MEP) contractors, designed to optimize prefabrication and fabrication workflows. Their platform enables contractors to plan, schedule, manage, track, and install fabrication while providing real-time performance metrics. More here.
[View open jobs - 1 role in Sales]
3D Printing
DigitalArchi, a Japanese startup, raised ~$2.24m in funding. They have developed a large 3D printer to fabricate resin concrete formwork as well as interior and exterior panels using recycled plastics. More here.
[View open jobs - 1 role in Sales]
Estimating
Attentive.ai, an Indian startup, raised $12m in Series A2 funding. They have developed an AI platform to automate takeoffs for the construction and field services industry. More here.
[View open jobs - 3 roles in Operations, 2 roles in Software, 1 role in Finance, 1 role in Design, 3 roles in Sales, 1 role in Marketing]
Recycling
ScrapBees, a German startup, raised €4m in funding. They have developed a digital first recycling solution for construction sites which manages the first mile of the recycling process, the handling of logistics from construction sites to recipients of unmixed materials. More here.
Notes:
ScrapBees analyses, weighs and digitally records the material to be disposed of on site.
The customer then receives a credit note for valuable materials and ScrapBees sells the collected material to a network of national retailers and processes, sorted by type and with clearly documented origin.
The startup appears to have strong traction, operating a fleet of 30 vehicles with drivers employed on a permanent basis.
Green Materials
InnoCSR Group, a South Korean startup, raised Series A funding (undisclosed). They develop sustainable materials including the ‘Good Bricks System’ which eliminates the need for coal and firing in the production process and the ‘Good Roads System’ which uses an eco-friendly soil stabilizer to deliver pavement solutions. More here.
[View open jobs - 1 role in Sales]
Evertak, a Missouri startup, received investment (undisclosed). They manufacture composite railroad ties which have a lifespace of over 50 years compared to the average of 8 to 12 years of wood railroad ties. More here.
Building Decarbonization
Bedrock Energy, an Austin startup, raised $12m in Series A funding. They specialize in the building and delivering of geothermal heating and cooling systems for buildings. More here.
[View open jobs - 1 role in Software, 3 roles in Other]
Notes:
As previously mentioned, novel climate tech solutions are increasingly going to market as vertically integrated construction companies to drive the adoption of their innovations.
In this case, Bedrock has developed a novel technology stack that combines autonomous drilling with advanced subsurface modeling, tripling the speed and space efficiency of geothermal projects and enabling geothermal HVAC systems to fit in dense, urban locations.
The primary challenge with this innovation lies in adoption.
Building owners often lack the knowledge to deliver and manage the integration of geothermal systems into their energy infrastructure.
To address this, Bedrock has vertically integrated its operations by developing an intelligent construction platform for geothermal borefield construction.
The startup manages all aspects of the process, including:
Designing the geo-loop field,
Drilling boreholes, and
Providing end-to-end delivery, including MEP design, energy financing, construction partner management, and the installation of geothermal heat pump systems.
Charging Infrastructure
Aegis Energy, a UK startup, raised £100m in funding. They are creating a network of clean energy hunts to help commercial vehicles decarbonise offering electric charging, HVO (Hydrotreated Vegetable Oil), hydrogen and bio-CNG (Compressed Natural Gas). More here.
[View open jobs - 1 role in Sales]
Notes:
The company plans to build their first five hubs by 2027 and expand to 30 by 2030.
Each facility can service over 40 heavy goods vehicles and 25 vans.
Policy and Regulatory Changes
US Executive Orders
This week Donald Trump issued a number of executive orders which will impact the construction sector. I’ve summarised them below however I’d highly recommend reading Construction Physics’ overview here. Other policy and regulatory changes are below.
Trump Orders Agencies to Halt Spending From Biden’s Climate Law
Trump has ordered federal agencies to “immediately pause” the spending of money from the Inflation Reduction Act (IRA).
The directive mandates agencies to review grants, loans and other payments associated with IRA.
This order, as summarized in Construction Physics, repeals a number of Biden’s executive orders such as:
Mandating 50% EV sales by 2030
Setting up a climate change support office
Requiring protective flood siting for federal projects.
Additionally it repeals an executive order authorizing the Council on Environmental Quality (CEQ) to make regulations related to the National Environmental Policy Act (NEPA).
Notes:
Whenever the federal government wants to build a new piece of infrastructure it has to go through NEPA.
NEPA studies which were originally meant to be just a few pages long can now be as long as thousands of pages and take years to complete.
The CEQ’s regulations have defined how federal agencies undertake environmental reviews.
These are often used by environmental groups to support litigation.
Without these regulations in place, agencies can adopt varied or narrower definitions and treat certain environmental factors as optional rather than mandatory.
Related:
According to Canary Media, this Executive order ‘rescinds [a] federal program to boost low-carbon building materials.’
U.S. Wind Power Faces Huge Challenges After Trump Orders a Crackdown
Trump issued an executive order ‘Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects.’
The order halts all leasing of federal lands and waters for new wind farms pending a fresh government review of the industry.
It also directs federal agencies to stop issuing permits for all wind farms anywhere in the country.
Additionally, Trump directed the U.S. Attorney General and secretary of the interior to explore the possibility of ‘terminating or amending’ any leases that have already been issued.
There are currently ~40 gigawatts worth of wind projects under development.
Trump says he will unleash American fossil fuels, halt climate cooperation
Trump issued an executive order ‘Declaring a National Energy Emergency.’
This order aims to accelerate permitting of oil, gas and power projects.
It allows certain requirements to be waived and approvals expedited.
Unleashing Alaska’s Extraordinary Resource Potential
The order prioritizes developing oil and gas resources in Alaska.
This includes the prioritization of permitting and infrastructure for the Alaska LNG Project, a $39 billion initiative.
US
Biden protects 84% of IRA clean energy grants from being clawed back
U.S. President Joe Biden's administration has protected about $96.7 billion in clean energy grants from any clawback by the next administration.
This is as 84% of the funds from the Inflation Reduction Act have been ‘obligated.’
It means contracts have been signed between U.S. agencies and recipients.
Related:
US Scraps Climate Reporting Rules for Contractors
First proposed in 2022, the rule would have obliged “major contractors” that do more than US$50mn in business with the US government to annually disclose the extreme weather risks that could harm them.
US agencies withdrew the rule on January 13 citing a lack of time under the Biden-Harris administration to finish the proposal.
The rules could have covered some 5,700 companies.
North Carolina Launches Federal Home Energy Rebate Programs to Lower Families’ Utility Bills
Under the initial launch, owners of single-family, owner-occupied homes can save money on retrofits — typically the installation of multiple home upgrades — that meaningfully reduce household energy usage.
Rebate amounts are based on household income and the amount of energy saved.
North Carolina’s launch is part of a nationwide initiative to provide $8.8 billion in federal funding for states, territories, and Tribes to offer rebates to reduce residential energy costs.
The rebates make it more affordable for households to install cost-saving measures such as heat pumps, electrical panels, and insulation.
Advanced reactors, interstate cooperation part of New York’s nuclear future
New York will develop a “master plan” for advanced nuclear development which is expected to be published by the end of 2026.
They will also support Constellation Energy’s efforts to study advanced nuclear reactor siting at its Nine Mile Point nuclear plant.
China
China: New Policies Boost Low-Carbon Hydrogen in Industrial sector
China released new national guidelines, the Implementation Plan on Accelerating the Deployment of Clean and Low-Carbon Hydrogen in the Industrial Sector.
It aims to boost the Chinese Government’s efforts to promote the use of low-carbon hydrogen in industrial sectors.
The plan has policy goals and key tasks.
In relation to construction, it emphasizes the need to build infrastructure including a complete industrial chain from hydrogen production, storage to refuelling.
In addition it highlights the importance of standardizing and certifying hydrogen energy infrastructure.
Mexico
Mexico Plans Nearshoring Incentives to Curb China Imports
Mexico’s President announced a plan to reduce the country’s imports from China.
This is to align the country with the US and Canada as trade partners.
The incentives will include tax deductions for local and foreign companies as a way to promote nearshoring and the growth of factories.
They will also seek to grow Mexico’s total energy generation capacity by about 16%, with a focus on increasing the share of renewable energy sources.
Czech Republic
Czech Republic Unveils Plans For 68% Nuclear Share By 2040
The Czech Republic plans to completely abandon the use of coal by 2033 and increase the share of nuclear power in the energy mix to 68% by 2040.
According to the plan, the share of nuclear power should be 44% by 2030.
National Infrastructure Projects & Priorities
The graph depicts nuclear power under construction and the origin.
China leads with 33.3 GW of power under construction.
India is next with 5.9 GW under construction.
US
Trump Announces $100 Billion A.I. Initiative
President Trump on Tuesday announced a joint venture between OpenAI, SoftBank and Oracle to create at least $100 billion in computing infrastructure to power artificial intelligence.
The venture, called Stargate, could eventually invest as much as $500 billion over four years.
It will start with 10 data centers already under construction in Texas.
South Carolina to Reboot Giant Nuclear Project to Meet AI Demand
Santee Cooper has tapped financial advisers to look for buyers that can restart construction on a pair of nuclear reactors.
It is betting interest will be strong, with tech giants such as Amazon and Microsoft in need of clean energy to fuel data centers.
China
China's solar, wind power installations soared to record in 2024
Installed solar and wind power capacity climbed 45.2% and 18%, respectively, in 2024.
There is now 886.67 GW of installed solar power, up from 609.49 GW in 2023.
Comparatively the US had 139 GW in 2023.
Canada
Ontario investigating nuclear site opportunity near Port Hope
The Ontario government has tasked Ontario Power Generation (OPG) with exploring the development of a new nuclear energy generation facility at the Wesleyville site.
This is due to a projected 75% increase in energy demand by 2050.
The proposed nuclear development could contribute $235 billion to Ontario’s GDP over a 95-year lifespan.
India
Construction on track at India’s first undersea tunnel for bullet train project
The 7-kilometre-long undersea tunnel, designed to facilitate bullet trains running at speeds of 250 km/h, will feature two parallel tracks.
It will be part of the MAHSR Corridor, India’s First Bullet Train Project stretching across 508 km, providing high-speed connectivity between the Indian states of Maharashtra and Gujarat.
UAE
Masdar unveils USD 6 bn mega solar and battery project in Abu Dhabi
The project is to provide 5.2 GW of solar and 19 GWh of storage capacity.
If completed, it would be the world’s largest.
UK
Ministers pledge record £410m to support UK nuclear fusion energy
The funds could help construct a world-leading fusion power project on the site of an old coal plant in Nottinghamshire by 2040.
It follows the government’s promise of ‘significant support’ for nuclear fusion research in its first autumn budget statement
Scotland
£800m deal to build Europe’s largest battery storage projects in Scotland
The new projects, Coalburn 2 and Devilla in Fife, each have a capacity of 500 MW.
Australia
Investment Manager Secures $451 Million Funding for Australia Big Battery
The Supernode battery in Queensland has a capacity of 520 megawatts for its first two stages.
They are planning a third phase that would bring capacity to 760 megawatts.
This would make it one of the largest batteries under construction globally.
News
Top 50 Contech Startups 2025 (Cemex Ventures)
Construction Technology Salary Report 2025 (FMC Talent)
In this report, I added my prediction on what I see as the solution or technology that will make the biggest impact in 2025.
Hint: It’s an AI tool, but not one offered by a startup…
There’s a Traffic Jam Forming at U.S. Rocket Launchpads (WSJ)
The nation’s busiest spaceports are fielding record demand, spurring new efforts to develop launch sites in landlocked states and even at sea.
Google’s Project Green Light: Launched in Chile
Green Light applies AI to Google Maps driving trends to help city traffic engineers optimize traffic signals, reducing stop-and-go traffic and emissions.
Santiago is joining the 15 cities across 4 continents where Green Light is operating.
Elon Musk’s Boring Company Is Tunneling Beneath Las Vegas With Little Oversight
As the project, the Vegas Loop is privately operated and receives no federal funding, it is exempt from governmental vetting and environmental analyses.
These reviews assess whether a proposal is the best option and inform the public of potential impacts to traffic and the environment.
Pathways to Commercial Liftoff: Geothermal Heating and Cooling (Department of Energy)
The report into geothermal HVAC systems shows a pathway to tripling U.S geothermal capacity by 2035.
It's getting easier to find a charger for your electric car
The number of public electric vehicle chargers doubled over the last four years.
There are more than 207,000 publicly available EV charging ports in the U.S. today.
This is up from around 95,000 when Biden took office in January 2021.
Los Angeles Fire Victims Turn to Prefab Homes for Quick Builds
Sweden is Building the World’s Largest City Made Entirely From Timber
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.