Last Week in ConTech - 3 March 2025
A New Cold War for AI Dominance?
Deep Insight: A New Cold War for AI Dominance?
Last week, Alibaba, a Chinese ecommerce company, announced a major pivot towards AI.
They plan to invest $53 billion in AI infrastructure, including data centers—more than their total AI and computing infrastructure spending over the past decade.
The timing is notable. Two weeks ago President Xi Jinping met with Chinese tech leaders, urging them to "show their talent" and reaffirm confidence in China’s economic model.
It’s a major shift in stance from 2020 when Beijing cracked down on Alibaba, blocking its IPO and issuing a record fine after co-founder Jack Ma’s controversial speech raised concerns over the power of internet platforms.
Now, the tide appears to be turning.
Facing escalating trade tensions and sanctions on AI and semiconductor technology, the tech giants could become critical national assets. Alibaba’s move could be a bid to both regain favor and become a catalyst for broader private sector investment in AI infrastructure.
And it raises a larger question: would Beijing formalize an AI infrastructure policy to compete directly with the U.S.—pushing AI investment toward Cold War-like strategic importance?
As Vice President JD Vance stated in February, 'The United States is the leader in AI, and our administration intends to keep it that way.’
So with AI infrastructure becoming a bottleneck and a geopolitical battleground, the race for AI dominance may come down to one question: who can build faster?
In this issue there are:
4 Startup Fundings
15 Policy and Regulatory Changes
9 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
5 News articles
21 new jobs posted - view here
Reading time: 10 mins
Two quick notes
(regular content below)
This week we had news of the layoffs at Autodesk - it’s terrible and if anyone who was affected is looking for a new role in ConTech, feel free to book in a time on my calendly for a chat. Allister, Stefanie and I have been building AEC Tech Jobs and, through this, we are learning and understanding who is hiring right now. Happy to help people in any way we can - feel free to forward the link to those interested.
I’ll also be talking as part of a panel on the future of AI in construction at the 2025 A.I. Excellence in Construction Virtual Summit on April 2nd which has participation from AGC of America, Microsoft, and Procore. It’s run by Nate Fuller who has written on Last Week in ConTech before.
For the last year I’ve been working on an AI capability and uplift training program while embedded in a Government Infrastructure Authority. From need finding, education strategy and roadmapping to workshop design and facilitation, it’s been an end to end program that has now been validated (NPS: 9, 150+ participants) and its being operationalized and scaled. I’m curious to attend and learn if other such programs exist as well as learn from the speakers there (if you are working on an AI training program, please reach out!). If you’re interested in the summit, you can check the event and view tickets here.
Startup Funding
Green Materials
Cambium, a Baltimore startup, raised $18.5m in Series A funding. They have developed a supply chain solution for the wood industry which connects tree care services, sawmills and manufacturers to transform salvaged wood into sustainable wood products for construction. More here.
[View open jobs - 3 roles in Sales, 1 role in Software, 1 role in Marketing]
Notes:
The wood product industry is valued at $788b.
Building Decarbonization
Hyting, a German startup, raised funding (undisclosed). They have developed a hydrogen powered heating technology which can be used to decarbonize non-residential buildings which are challenging to renovate energetically. More here.
Notes:
The EU’s Energy Performance of Buildings Directive (EPBD) dictates the energy retrofit of the worst performing buildings.
For commercial buildings, 16% of the worst performing buildings must be renovated by 2030 and 26% by 2033.
This solution provides an opportunity to decarbonize these buildings, some of which are difficult to access or renovate without pausing operations e.g. hospitals.
Project Management
SmartSuite, a Californian startup, raised $13m in Series A funding. They are building a project and work management platform servicing a number of industries including construction specifically managing bids, complex RFPs, subcontractors, equipment and more. More here.
[View open jobs - 2 roles in Sales]
Notes:
SmartSuite was created in response to companies’ frustration with juggling multiple disconnected software tools.
It brings together three key software use cases into a single platform:
Project management tools that organize work by projects and tasks (e.g., Monday, Asana).
Process management tools that help structure workflows (e.g., ServiceNow).
Document management tools for collaborative content creation (e.g., Notion, Google Docs, Microsoft Loop).
Labor Management
Firstwork, a San Francisco startup, raised $5m in Seed funding. They are building a HR platform for shift-based and frontline workers as traditional systems aren’t equipped to hire and onboard the volumes associated with these workers nor are they equipped for the number of background checks, credential checks and certification required in specific industries. More here.
Policy and Regulatory Changes
US
The GSA is shutting down its EV chargers, calling them ‘not mission critical’
The General Services Administration (GSA), which manages buildings owned by the federal government, is planning to shut down all of its electric vehicle chargers nationwide.
Approximately 8,000 plugs are available for government-owned EVs as well as federal employees’ personally owned vehicles.
According to a March 2024 update, the GSA had ordered over 58,000 EVs and begun installing more than 25,000 charging ports.
Trump adds lumber to list of goods facing tariffs over 'next month or sooner'
Trump said he was thinking about a 25% tariff on lumber and forest products.
Notes:
This can have an impact on the cost of materials for construction.
The Electric Transmission Systems Construction Standards Act requires Illinois electric utilities and construction contractors working on transmission line projects to pay prevailing wage for the construction, installation, maintenance, and repair of the electric grid.
Additionally it supports the development of utility-scale battery storage projects including providing tax incentives.
US governors press for infrastructure permitting reform
The National Governors Association will press Congress this year to pass permitting reform legislation.
The NGA launched a working group to explore issues surrounding permitting reform, infrastructure acceleration and energy resilience.
There is a focus on the National Environmental Policy Act, judicial review and transmission siting.
Hochul Administration Stalls on All-Electric Building Code (New York State)
Nearly two years ago New York passed an all-electric buildings law.
However, the mandate is yet to trickle down to most municipalities, which are in charge of approving permits for new construction.
This is as New York has not updated its statewide building code which sets minimum construction standards.
The council was due to meet in early December to vote on a draft of the updated rules, but members never received the new draft and the meeting was postponed, twice.
It is now scheduled for this Friday, February 28.
Notes:
This situation highlights the gap between law as it is written (de jure) and how it is applied (de facto).
Here the law exists but is not yet enforced due to procedural and administrative hurdles.
It is a way in which climate laws and mandates can be slowed or impacted by those opposing.
Washington State grants $14.3M for public building retrofits
Twenty-six local governments, school districts and public higher education institutions in Washington State will share $14.3 million.
The funding will go towards energy-efficient building retrofits.
HUD delays manufactured home construction rule changes
The Department of Housing and Urban Development (HUD) has postponed the implementation of its updated Manufactured Home Construction and Safety Standards (MHCSS) from Mar. 17, 2025, to Sep. 15, 2025.
This temporarily freezes updates to manufactured home design and construction standards that were finalized last September under the Biden administration.
The Trump Administration Takes Aim at Transportation Research
The Transportation Research Board, a longtime bridge between academia and government, now faces existential questions about its future.
Federally supported projects have been canceled, experts have been fired, and datasets have disappeared
In road transportation, researchers explore myriad topics, ranging from asphalt composition to safe street design to autonomous vehicle deployment.
Notes:
The scale of the impact is unclear as the National Academies and TRB have not responded for comment by reporters.
Proposed tax credit for construction materials aimed at boosting Minnesota homebuilding
Two bills are to be sent to a House committee which would give first-time home buyers a refund on sales tax paid on construction materials used to build a new single-family home, duplex or triplex.
Oregon updates building code to allow 'stacked duplexes,' boost housing density
The Oregon Building Codes Division has adopted provisions allowing for stacked duplexes.
It defines stacked duplexes as “a vertically stacked, two-family dwelling where one of the dwelling units is located above the other dwelling unit and access to a yard, street, alley or public way is provided on not less than two sides.
Governor Sanders Announces the Communist China Defense Legislative Package
The Governor of Arkansas introduced the legislative package.
It will divest state resources from Communist China and ban foreign adversaries from buying land around critical infrastructure like military bases and electric substations.
UK
UK government sets out further sweeping reforms to toughen construction safety rules
The government’s response to the Grenfell Tower Inquiry’s final report means that a new single construction regulator will be established.
It will take on functions that are currently exercised by a variety of bodies, such as the Building Safety Regulator, Office for Product Safety and Standards, and local authorities.
The aim is to improve standards in the industry and ensure those responsible for building safety are held to account.
The single regulator will be responsible for the regulation of construction products, the regulation and oversight of building control, and the licensing of contractors to work on higher-risk buildings.
The article provides a breakdown of the changes and the timeline.
Germany
Far-right AfD surge is warning for Germany's other parties, says winner Merz
According to Sightline Climate, the new party prioritizes economic growth over green investment.
If Berlin pumps the brakes on its climate commitments, this could impact global clean energy efforts and climate finance momentum.
Japan
Japan adopts new carbon reduction targets as it plans to boost nuclear and renewable energy by 2040
Japan’s government adopted new decarbonization targets aiming to reduce greenhouse gas emissions by more than 70% from 2013 levels.
The new energy plan says that nuclear power should account for 20% of Japan’s energy supply in 2040.
It aims to expand renewables to 40-50% from nearly 23% and reduce coal-fired power to 30-40% from nearly 70%.
Norway
Norway to open protected rivers to hydropower plants
The Norwegian parliament has voted to open up protected rivers to hydropower plants.
The bill allows power plants bigger than 1MW to be built in protected waterways if the societal benefit is “significant” and the environmental consequences “acceptable”.
National Infrastructure Projects & Priorities
US
Apple to invest more than $500B in US manufacturing
The company plans to spend $500 billion domestically over the next four years.
Them and their partners will open a new facility in Houston by 2026 that makes servers for its artificial intelligence system.
The company also plans to double its U.S. Advanced Manufacturing Fund to $10 billion.
They’ll create a training academy in Detroit for upskilling workers and grow its investments in research and development.
Meta in talks for $200 billion AI data center project, The Information reports
According to the article Meta executives have informed data center developers that the company is considering building the campus in states including Louisiana, Wyoming or Texas.
A Meta spokesperson denied the report, saying its data center plans and capital expenditures have already been disclosed and that anything beyond that is "pure speculation".
Solar, battery storage to lead new U.S. generating capacity additions in 2025
The U.S. Energy Information Administration expects 63 gigawatts (GW) of new utility-scale electric-generating capacity to be added to the U.S. power grid in 2025.
This amount represents an almost 30% increase from 2024 when 48.6 GW of capacity was installed.
Together, solar and battery storage account for 81% of the expected total capacity additions, with solar making up over 50% of the increase.
Microsoft data center leases slowing, analysts say, raising investor attention
TD Cowen analysts in a note said the tech giant had scrapped leases for sizable data center capacity in the United States.
It suggested potential oversupply as it builds out artificial intelligence infrastructure.
The brokerage, citing its supply chain checks, said Microsoft has canceled leases totaling "a couple of hundred megawatts" of capacity with at least two private data-center operators.
Notes:
In response to this report gaining traction, Microsoft has denied the claim suggesting the company is cancelling data centre leases in the US.
China
Alibaba Plans to Spend $53 Billion on AI in a Major Pivot
The e-commerce pioneer has ambitions of becoming a leader in artificial intelligence.
They have pledged to invest more than 380 billion yuan ($53 billion) on AI infrastructure such as data centers over the next three years.
Alibaba envisions becoming a key partner to companies developing and applying AI to the real world as models evolve and need increasing amounts of computing power.
This sets a record for the largest investment ever by Chinese private enterprises in the field of cloud and AI hardware infrastructure construction.
India
Apple’s quiet pivot to India
Around 15% of Apple’s iPhones are currently made in India.
This is expected to increase to 25 per cent by 2027.
Notes:
This is another sign of the implications of rising geopolitical tensions between the US and China.
Countries like India will become major winners as they offer alternative low cost manufacturing to Big Tech companies.
And, as Big Tech leads, it is likely that other smaller firms will follow in diversifying their supply chain to new hubs.
Related:
Canada
Canada is getting high-speed rail
Canada is developing a high-speed rail network in the Toronto-Quebec City corridor.
This rail network will span approximately 1,000 km and reach speeds of up to 300 km/hour.
Canada’s investment in the co-development phase of the project represents $3.9 billion over six years, starting in 2024-25.
Belgium
Belgium shutters oldest nuclear plant, but new government pushes for nuclear revival
In 2003, Belgium enacted a law banning construction of new nuclear reactors and calling for eventual decommissioning of existing reactors.
De Wever, who became prime minister on February 3, wants the country to reverse course on nuclear power.
The goal is to double Belgium’s current nuclear generation capacity of 4 GW and build new small modular reactors.
Poland
Microsoft will invest up to €670M in Poland to expand AI, cloud, and cybersecurity
The investment is aimed at expanding cloud infrastructure and developing AI technology in the country.
Acquisitions
Badger Meter, a Wisconsin flow measurement and water quality and control products provider, acquired SmartCover, a Californian provider of real time remote infrastructure data for $185m. More here.
News
Autodesk to Cut Jobs as it Targets Higher Profits
Autodesk Inc. is planning to cut about 1,350 employees as part of a broader focus on profitability.
The reductions will amount to about 9% of the workforce.
AI giants learn to share Trump’s zeal for fossil fuels
The pivot was underway before Trump took office, as tech firms looked to gas amid a shortage of adequate new clean energy.
There are more than 220 plants in various stages of development nationwide.
How China Is Challenging the West With Its Trillion-Dollar Infrastructure Plan
Since 2013, China’s Belt and Road infrastructure program has invested more than $1 trillion into projects in some 150 countries.
How China built the world’s largest high-speed rail network
Grid equipment manufacturers anticipate 2% annual US load growth through 2050
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.