Last Week in ConTech - 6 January 2025
Microsoft to Spend $80 Billion on AI Data Centers in 2025 + Congress fails to ease energy permitting rules
Hey Everyone!
I wanted to say thank you for supporting and reading this newsletter throughout 2024.
This project has been running for over a year as an attempt to track all the changes and trends in the ConTech ecosystem after I struggled to find a centralized resource.
Since then we’ve grown to be read by a diverse range of industry stakeholders from investors and founders to contractors and consultants.
This year the goal is growth. I believe that one of the biggest impediments to technology adoption in construction is discovery and awareness of solutions. By growing the newsletter and providing an avenue for those interested in tech to learn about, pilot and adopt new solutions, I hope we can push through change.
To support this, we are going to be starting a biweekly series of Guest Letters from experts in the industry on important trends or topics to be aware of. Concurrently we are going to be growing AEC Tech Jobs to be a hub for those transitioning into the ConTech industry.
Normally, as I am pretty bad at asking for help, I hide my ask to share this email with friends at the bottom of the email where many of you probably don’t see it.
But, given the above goals I thought to put it front and centre today.
If you enjoy or get value from Last Week in ConTech, I would love it if you could share this post by doing any of the following:
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Happy New Year and hope you have a wonderful 2025 ahead!
Bhragan
In this issue there are:
6 Startup Fundings
11 Policy and Regulatory Changes
11 New National Infrastructure Projects & Priorities
0 New investment funds
0 Acquisitions
9 News articles
10 new jobs posted - view here
Reading time: 11 mins
Startup Funding
Construction Management
StruxHub, a San Francisco startup, raised $4m in seed funding led by Brick and Mortar Ventures. They have developed a construction management platform with a variety of modules such as Deliveries to coordinate deliveries and resources, Forms to manage inspections and work permit applications, Schedule to communicate short term schedules and Home to communicate site related announcements. More here.
Logistics
Ruck, a Utah startup, raised $5m in Seed funding. They have developed a delivery-enabled construction materials marketplace (a ‘DoorDash’ for construction supplies) whereby material vendors can plug their inventory into a network of gig truck and trailer drivers and get their orders delivered as fast as 2 hours. More here.
Notes:
Reading through their FAQ I found these points interesting:
Ruck targets a 3-hour window for delivery and then tries to deliver the order as soon as 2 hours (this is as fast as asking a labourer to run to the store).
They have listed their delivery cost breakdown here. Their mileage charge is $1.50/mile plus a base charge of $50 (trucks) or $100 (trailers).
Material Waste / Circularity
Excess Materials Exchange, a Dutch startup, raised $5m in Series A funding. They have developed a digital platform which allows B2B companies to track and exchange surplus materials with companies who can repurpose them to minimise waste with a focus on reuse and recycling. More here.
[View open jobs - 2 roles in Sales, 1 role in Marketing]
Notes:
While not specifically designed for construction, this solution appears to have gained traction within the construction sector.
One challenge in reusing materials on-site is obtaining accurate information about their origin, condition, and quality.
To address this, they use product passports with QR codes and RFID tags to track and trace materials on-site.
These tools enable efficient monitoring of material movement and provide quick access to key details, such as material composition, condition, location, quantity, and lifecycle.
This technology offers significant value in tracking and managing on-site material inventory effectively which is traditionally done manually.
Prefabricated Buildings
EPACK Prefab, an Indian startup, raised $20m in funding. They have developed pre-engineered building solutions and cover design, fabrication, production and installation of the building. More here.
[View open jobs - 1 role in Marketing]
Wearables
Proxgy, an Indian startup, raised $3m in funding. They develop IoT based solutions and smart wearables which help blue collared workforces connect, collaborate and coordinate. One product is the SmartHat, which is a smart hardhat with dual camera setup for recording and image capture, built in walkie talkie, gas sensors, vitals monitoring and check in functionality. More here.
Compliance
ARTEM, a German startup, raised €1.5m in seed funding. They are developing a hardware and software solution to help EU companies and non-EU producers ensure Carbon Border Adjustment Mechanism (CBAM) compliance. It does so by providing real-time emissions data collection and predicting the financial impact of carbon pricing on goods. More here.
Notes:
EU companies which import cement, iron, steel, aluminum, fertilizers, electricity, or hydrogen from non-EU countries must comply with the Carbon Border Adjustment Mechanism (CBAM) regulation.
This prices in the CO2 emissions of imported products.
The regulation demands detailed data reporting and imposes fines for non-compliance.
Similar regulation has been proposed in other regions such as the UK which is planning to implement their requirements by 2027.
Policy and Regulatory Changes
Congress fails to reach deal to ease energy permitting rules
A bipartisan group of lawmakers failed to reach a compromise deal to reform permitting rules that would speed the development of new energy infrastructure.
Republicans have long pushed for changes to the federal government’s permitting rules, arguing that the cumbersome and timely process has stalled the build-out of fossil fuel projects.
Democrats have argued that clean energy projects are stalling due to strict permitting rules and that electrical grid bottlenecks are preventing the delivery of renewable energy to major power markets.
Conservatives have rejected measures that would ease approval of grid projects in their states that they fear could raise power rates, while progressives oppose loosening rules for oil and gas projects that contribute to climate change.
'Climate superfund’ could make NY more resilient, but industry groups may try to block it
Major fossil fuel companies will be required to pay into a “climate superfund” that will support resiliency projects across New York.
The law is meant to raise up to $75 billion over 25 years that can be put toward infrastructure designed to mitigate the effects of climate change.
California approves $1.4B to deploy 17,000 EV chargers, hydrogen fueling infrastructure
The funds will be distributed to projects over the next four years through competitive grants.
California has about 152,000 public and shared private chargers installed and expects that number to reach 250,000 in the next few years.
NY legislative leaders reject MTA's $65B plan to fix mass transit infrastructure
Lawmakers cited a funding gap as the reason for the rejection.
The agency must now hold off on moving forward with contracts for new train cars and upgrades to the subway’s aging electrical systems.
If the legislative leaders don’t withdraw their rejection within 10 days after the MTA’s response, transit officials must submit an entirely new plan.
The New York State Department of Transportation has received a $32 million grant to advance the use of low carbon materials in construction projects.
The money was provided via the Low-Carbon Transportation Materials Grants program.
As Sweden Look To Nuclear, Inquiry Supports End To Uranium Ban
In August 2023 Sweden’s climate minister Romina Pourmokhtari announced plans to lift the country’s ban on uranium mining and make way for greater nuclear energy capacity.
Uranium mining has become an issue of concern for Europe’s nuclear industry because Russia dominates the processing of the fuel.
Sweden will begin construction on a new nuclear power plant before the country's next legislative election in 2026.
The right-wing coalition government has vowed to massively ramp up nuclear energy.
New York State Public Work Contractor Registration Requirement Takes Effect December 30, 2024
The registration requirement applies to contractors and subcontractors performing work on public works projects and private projects that are covered by Article 8 of the Labor Law, including projects that have received significant public subsidies, and certain renewable energy systems.
Article 8 of the Labor Law contains New York State’s prevailing wage requirements for public work and certain private construction projects receiving public funds.
US approves Florida plan to use carcinogen radioactive waste in road construction
The US Environmental Protection Agency (EPA) has approved a controversial proposal to allow the use of phosphogypsum, a radioactive byproduct from the phosphate industry.
Mosaic plans to build four test road sections utilizing various mixtures of phosphogypsum in the road base material.
India's Plan to Save $500 Million on a Single Road Project
The Nagpur-Mansar Bypass on NH-44 has become India’s first national highway stretch to be constructed using lignin-based bio-bitumen.
Bitumen is a black, viscous material derived from crude oil and is commonly used as a binder in road construction.
Lignin, however, is a natural polymer found in plant cell walls and is abundant in agricultural waste.
India’s bitumen consumption is expected to grow from 8.8m tonnes in FY24 to 10m tonnes in FY25.
Trump transition team plans sweeping rollback of Biden EV, emissions policies
The transition team recommends imposing tariffs on all battery materials globally in a bid to boost U.S. production, and then negotiating individual exemptions with allies.
The transition-team plan would redirect money flowing to building charging stations and making EVs affordable into national-defense priorities, including securing China-free supplies of batteries and the critical minerals to build them.
Notes:
The transition team appears to be supportive of more hawkish (and protectionist) foreign policy.
This has an impact on the construction of manufacturing / processing facilities to develop alternative supply chains for critical materials.
Feds clear the way for robotaxis without steering wheels and pedals
The National Highway Traffic Safety Administration (NHTSA) proposed a new national framework that could make it easier for companies to deploy at scale autonomous vehicles without traditional manual driving controls (steering wheel, mirrors etc).
The AV STEP program has two tiers — one for vehicles built with human controls, with fallback designs that can be managed by humans; and another for vehicles built without such controls.
Currently, autonomous vehicles that have all their manual parts are allowed to operate on public roads without oversight from NHTSA.
Any AVs that can’t be taken over by a human driver have to get an exemption from the agency.
Notes:
This policy paves the way for the rapid deployment of autonomous vehicles (AV) which have no capability for human intervention.
As these types of vehicles become more popular, they will require increased investment in connected infrastructure.
Examples include 5G network connectivity expanded to cover the entirety of the highway network, vehicle to infrastructure sensors to provide critical information to AVs such as reduced speed zones, construction work or red lights or developing a road marking / traffic sign standard to be used to assess quality of markings / signs to support AVs.
Related:
National Infrastructure Projects & Priorities
Big Tech
Microsoft to Spend $80 Billion on AI Data Centers This Year
More than half of this projected spending through June 2025 will be in the US.
In the previous fiscal year ending in June 2024, Microsoft spent more than $50 billion on capital expenditures, the vast majority related to server farm construction fueled by demand for artificial intelligence services.
Global
Green Hydrogen Goes From Hyped to Humbled on Eye-Popping Costs
A number of projects to produce green hydrogen have been abandoned this year as expectations for reduced costs failed to materialize.
Analysts increased their cost estimates for green-hydrogen projects in the US and European Union by 55% this year, compared with 2022 forecasts.
That’s due to design and engineering processes proved more complex than initially thought.
As a result, hydrogen produced using clean energy costs four times as much as that made from natural gas.
Notes:
There has been a reduction in new hydrogen project announcements impacting construction.
China
China to build world's largest hydropower dam in Tibet
The dam, which will be located in the lower reaches of the Yarlung Zangbo River, could produce 300 billion kilowatt-hours of electricity annually.
This would more than triple the 88.2 billion kWh designed capacity of the Three Gorges Dam, currently the world's largest, in central China.
China Connects Biggest Desert Solar Plant in Effort to Curb Coal
The 4-gigawatt facility, located in the southeastern edge of the Taklamakan Desert, was linked to the grid.
This solar project is so far the biggest piece of a plan by the Chinese government to build 455 gigawatts of renewables across the country’ deserts this decade.
US
The DOE and its Loans Program Office allocated more than $35b across closed and conditional loans
This funding is being allocated for climate tech and energy infrastructure prior to the Trump administration.
Full list of project funding here under the ‘headlines’ section.
US approves major Massachusetts offshore wind farm
The Biden administration approved its eleventh large-scale offshore wind farm.
The project will have 141 turbines and supply power to some 840,000 homes by 2030.
Trump, during his campaign for the presidency, pledged to stop the offshore wind industry's progress.
US grid-scale energy storage sees record installations, deployments in Q3
The U.S. energy storage market saw record growth in the third quarter with 3,806 megawatts (MW) worth installations and 9,931 megawatt-hours (MWh) deployed.
This was an 80% and 58% increase, respectively, from a year earlier.
The Energy Department found the U.S. will need to double or triple transmission capacity in the three decades to 2050.
Is the U.S. Answer to China’s Belt and Road Working?
The US announced a loan to refurbish an existing rail line from the Democratic Republic of Congo (DRC) to Angola's Atlantic port of Lobito, reducing shipping time to the United States.
U.S. involvement in large-scale infrastructure projects in Africa, where China has been dominating for decades, represents a notable shift.
That change has been facilitated, in large part, by a new U.S. development bank: the International Development Finance Corporation (DFC).
Notes:
As Trump comes into office on a US first agenda, it will be interesting to see if he continues to invest in infrastructure globally to counter China.
This is impactful as aid can tend to be ‘boomerang aid’ whereby the funding goes to the companies in the donor’s countries.
For example, if a country such as the US is to give infrastructure aid in Africa, they may want the construction to meet US building standards.
As local companies do not have this expertise, a large US based construction firm would bid and win the work.
France
France adds first nuclear reactor in 25 years to grid
France connected the Flamanville 3 nuclear reactor to its grid in the first addition to the country's nuclear power network in 25 years.
The plant is going online 12 years later than originally planned and at a cost of around 13 billion euros - four times the original budget.
The operator, EDF, is planning to build another six new reactors to fulfil a 2022 pledge made by President Emmanuel Macron as part of the country's energy transition plans
Central Asia
China, Kyrgyzstan, and Uzbekistan to build railway bypassing Russia
The new railway will facilitate the transportation of goods from China through Central Asia to Turkey and onwards to European Union countries.
Vietnam
Ho Chi Minh City Opens First Metro Line After Years of Delay
The 19.7 kilometer (12.2 miles) metro line was green-lighted in 2007 with a planned 2018 opening date.
It had an initial cost estimate of about 17.4 trillion dong ($683.4 million) which eventually swelled to 43.7 trillion dong.
News
Lendlease’s UK construction business to be bought by US private equity giant
Atlas Holdings due to wrap up the deal by the middle of this year.
Fortera Forges Partnership With Sumitomo To Launch Low-Carbon Cement Tech In Asia
Asia is responsible for 73% of global cement production.
Skilled trades labor shortages persist. Here’s how some are responding.
As the need for HVAC technicians, plumbers, electricians and other skilled tradespeople continues to grow, companies are responding with a mix of workforce training initiatives and new technologies.
In a Major Reversal, the World Bank Is Backing Mega Dams
Despite continued opposition, the World Bank has approved the first of five big dam projects expected to get its support in the coming months.
ABC report: Wisconsin is the top state for construction
The scorecard ranks all 50 states and the District of Columbia based on policies and programs that better career pathways in construction, further workforce development and strengthen fair and open competition on taxpayer-funded construction projects.
For Decades, Installing E.V. Chargers Didn’t Pay Off for Retailers. Now It Does.
Retailers who offered chargers within 200 meters of the store saw a 4% increase in monthly visits and a 5% increase in spending compared to pre-charger installation.
16,000 Indian construction workers replace banned Palestinians in Israel
A new IEA report, The Future of Geothermal Energy, finds that geothermal energy could meet 15% of global electricity demand growth between now and 2050 if project costs continue to decline.
This would mean the deployment of as much as 800 gigawatts of geothermal capacity worldwide.
The projection estimated the cost of “always-on” geothermal energy could fall by 80% by 2035.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.