Last Week in ConTech - 7 April 2025
We need $68 trillion in new infrastructure by 2040.
Deep Insight: We need $68 trillion in new infrastructure by 2040.
This week, Larry Fink, the CEO of BlackRock shared his annual chairman letter.
As the leader of the world's largest asset manager with US$11.5 trillion in assets under management, his perspective provides a glimpse into the future of the construction industry.
The key takeaway was that we are on the edge of an infrastructure investment boom. By 2040, the global demand for new infrastructure investment is $68 trillion. Breaking it down that's:
Roads: $25 trillion
Energy $21 trillion
Rail: $8 trillion
Telecom: $6 trillion
Water: $4 trillion
Airport: $2 trillion
Ports: $2 trillion
Additionally he highlights that there is a growing mismatch between demand for investment and the capital available from traditional sources.
Governments can’t fund infrastructure through deficits as the current deficits can’t get much higher. Instead, they’ll turn to private investors.
To prepare for this, BlackRock acquired Global Infrastructure Partners (GIP), one of the leading infrastructure investors. He highlights how GIP makes infrastructure more efficient sharing the operational efficiency improvements at Gatwick Airport as an example.
For construction, it means that the infrastructure sector will have a new kind of private client with differing needs.
Larry goes on to highlight the challenges with constructing infrastructure at scale.
In both the U.S. and the EU, it usually takes longer to permit infrastructure projects than to construct them. A high-voltage power line can take 13 years to get approved— something China does in a quarter of the time.
Without investments in energy generation and transmission, we will have an unacceptable tradeoff: “Who gets the electricity—people or machines?”
He closes the section with a call for ‘Energy Pragmatism’ noting that the US has shut down more nuclear plants than its built making a case for new reactors:
Small modular reactors (SMRs) are everything old nuclear wasn’t—cheaper to build, safer to run, and you can build them anywhere.
The takeaways for the infrastructure sector if this future is realised are clear, more privatization, reduction in regulatory red tape and growing support for nuclear energy.
In this issue there are:
7 Startup Fundings
10 Policy and Regulatory Changes
6 New National Infrastructure Projects & Priorities
0 New investment funds
0 Acquisitions
6 News articles
36 new jobs posted - view here
Reading time: 11 mins
Startup Funding
Labor
Montamo, a Berlin startup, raised €6m in seed funding. They provide turnkey installation services for heat pump manufacturers and distributors including operating a training academy to help people transition into the construction industry. More here.
[View open jobs - 2 roles in Software, 1 role in Marketing, 1 role in Operations, 1 role in Data]
Notes:
Montamo raised pre-seed funding in December 2023 and at this time, they were focused on helping migrants become skilled construction workers in the energy sector.
They did so by operating training academy’s which delivered a ‘highly digitalised six- to eight-week course.’
Now, it appears they are hiring the workers they train to deliver installation services as a Trades contractor (they may have been testing this previously).
It is an increasingly competitive space as the skilled labour shortage is growing.
La Solive (France) and Smalt (Germany) are other startups which use the training bootcamp model to either help external companies source workers or to hire-train-deploy for their own book of work.
Related:
Ponte Labor, a Miami startup, raised $3m in Seed funding They have developed a hiring platform helping employers to access work-authorized Hispanic immigrants by pre-vetting, matching and onboarding legally authorized hourly workers. More here.
Notes:
Ponte has initially found traction in the hospitality industry and has stated they plan to expand to construction.
Almost 4 out of 5 of the immigrant construction workers in the US from 2011 to 2023 were Hispanic.
Real Estate
Prophetic, a Portland startup, raised Seed funding (undisclosed). They have developed a real estate development opportunity platform which features tools such as SiteAI (automates development site plans), city & county zoning maps data and Statewide Diligence maps to assess environment conditionals across map layers. More here.
Notes:
This solution consolidates multiple queries and searches that development professionals regularly perform.
For example, as an engineer, before conducting a preliminary site investigation, we request a ‘Dial Before You Dig’ report, which consolidates underground services plans (e.g. gas, telecommunications, water, etc.).
Data is often fragmented across various entities, including private organisations, making streamlining access to this information incredibly valuable.
So much of the challenge in construction can be data access and search, even finding the right specification for a design can be tough.
AI, when connected to the right data sources, could significantly improve access and efficiency.
Green Materials
Ecoat, a French startup, raised €21m in funding. They develop bio-based binders for paints and coatings, reducing emissions in products such as architectural coatings. More here.
Notes:
Many construction companies add green materials in non-structural use cases such as mass timber in the lobby of a building.
This is usually driven by a request for the client to reduce emissions making finding a safe location (low risk, non-structural use case) important.
Green paint could be another way to meet this emerging requirement.
Water
LeakZon, an Israeli startup, raised $5m in Series A funding. They have developed a water management solution for customers like municipalities and utilities ingesting GIS data (and others) to identify leaks and optimize operations and maintenance spend. More here.
Notes:
Water shortages and droughts are becoming increasingly common across many parts of the world.
In Australia, I grew up with water restrictions due to a severe drought (4 min showers only).
These realities meant that Water-Sensitive Urban Design (WSUD) was an important philosophy and part of the civil engineering curricula.
Solutions such as LeakZon will be of increasing importance for municipalities and help drive proactive Asset Management practices.
Building Management Systems
GridPoint, a Virginia startup, raised $45m in funding. They have developed an energy management system which monitors HVAC systems and lighting to optimize energy use. More here.
[View open jobs - 1 role in Sales, 1 role in Customer Success]
Grid Tech
Safegrid, a Finnish startup, raised €8.5m in funding. They have developed a grid fault detection system which uses high frequency signals to pinpoint locations where faults are occurring for immediate rectification as well as a system for Smart Fault Prediction. More here.
[View open jobs - 1 role in Customer Success]
Related:
ConTech Event in Spain
As a side note, if you are a ConTech startup seeking to engage with the Spanish ecosystem I recommend checking out ConTech Bizkaia taking place in Bilbao, northern Spain, on the 29th of May. Note: this is not sponsored.
It gathers construction companies, technology startups and other agents in the construction value chain.
The reason why I am sharing this is:
I know the organizer personally and he is genuinely passionate about construction.
The local government is offering up to 2k as travel compensation to selected international startups who attend (tiered on travel distance): Details here.
For the right company, this could really help expansion. Note: It’s free and is in Spanish.
Policy and Regulatory Changes
US
2025 Infrastructure Report Card - Energy (ASCE)
70% of transmission lines are over 25 years old.
Power transformers are averaging more than 40 years in service.
~25% of utility workers became eligible for retirement between 2017-2022.
56% of utility workers now have less than a decade of experience.
In 2021, the average U.S. customer experienced 7.5 hours of electric service interruption.
The American Society of Civil Engineers estimates a $578 billion investment shortfall by 2033 to meet basic reliability and capacity needs.
Notes:
Grid Tech is a huge opportunity.
We need to increase the maintenance and reliability of an aging grid while building new infrastructure to meet the renewable energy shift.
Related:
Americans Are Rushing to Get Off the Grid
Battery storage in US homes increased by 64% in 2024 compared to 2023 and a reason is to avoid fluctuating electricity rates and blackouts.
Trump installs 10% baseline tariff, country-specific duties
The U.S. will implement a universal baseline tariff of 10%, effective April 5.
Certain trading partners such as China, Japan and the European Union will be subject to higher duties than the baseline rate, effective April 9.
Those countries will face levies equal to half of a calculated total of trade barriers, including tariffs and value-added taxes imposed on the U.S.
The tariff rates will only apply to non-U.S. content of finished goods if at least 20% of the value of the product was made in the U.S.
New York State Proposes Reporting Guidance for Major Polluters
New York State Department of Environmental Conservation proposed rules for its Mandatory Greenhouse Gas Reporting Program.
This policy would require major polluters to report their emissions to the state.
This data will be critical for New York’s cap-and-invest program which will use proceeds to invest in programs that drive emission reductions.
A listed example of a possible program is to upgrade nearly half of New York homes to clean efficient heat pumps by 2035.
Notes:
Reading through the Fact Sheet and FAQs, what appears relevant to construction is that it would require owners and operators of certain industrial facilities and transporters of waste to report emissions.
They may then be subjected to emission charges, which may result in interest for energetic retrofits and related works.
Texas Senate passes bill to upend energy market, spur gas over renewables
The Texas Senate passed SB 388, which would set a target for 50% of new power plant capacity to be sourced from dispatchable generation other than battery energy storage.
If passed by the House and signed by Republican Gov. Greg Abbott, the bill effectively would penalize renewables and reward a subset of dispatchable generators.
Power plant owners and utilities that don’t invest their money according to this political directive would have to buy credits.
Texas is currently building more solar and battery capacity today than any other state.
Notes:
California and Texas combined have installed nearly three-quarters of the country’s total energy storage capacity of over 26 GW.
Texas could build nearly 7 GW of utility-scale storage this year.
This bill could change the calculus for investment impacting battery storage construction.
SEC Votes to End Defense of Climate Disclosure Rules
The rule, adopted in March 2024, would have required public companies to report on their climate-related risks and opportunities.
This includes their physical risk exposure and adaptation options.
Trump Wants to Build Homes on Federal Land. Here’s What That Would Look Like.
The Trump administration is creating a task force to identify federal land that would be suitable for building affordable housing.
Developing even 512,000 acres of the Bureau of Land Management’s lots could yield between three million and four million new homes.
The federal government is the country’s largest land owner, controlling 650 million acres, or more than a quarter of all U.S. land.
The aim of the task force is to identify the land parcels suitable for building.
It will then transfer or lease them out to public-housing authorities, nonprofits or local governments to develop homes.
Trump’s Plans to Build AI Data Centers on Federal Land
The Department of Energy is moving ahead with plans to allow companies to build AI data centers and new power plants on federal land.
It has put together a list of more than a dozen sites nationwide.
Officials hope to start construction on the new data centers by the end of this year and switch them on by the end of 2027.
The government could even allow new power plants, including nuclear reactors and carbon-capture operations, to be built on the same sites to generate enough electricity
Trump Administration Slashes Number of Federal Buildings for Sale in New List
The Trump administration is preparing to sell eight federal office buildings.
The agency earlier this month published a list of 440 federal buildings with 80 million square feet for downsizing.
It backtracked due to criticism.
New Mexico advances heat safety rule
The New Mexico Occupational Health and Safety Bureau submitted a petition to adopt a proposed rule around workplace heat illness and injury prevention.
The proposal singles out construction as among the industries most at risk for heat-related illness and injury.
The proposed rule would require employers to take measures to protect workers from heat-related illness and injury, including:
Taking time to acclimate to hot environments.
Providing access to clean, cool drinking water throughout the workday.
Mandating frequent rest periods in the shade.
India
US approves Holtec to build nuclear reactors in India, reviving Indo-US nuclear deal
The US Department of Energy has approved Holtec International to transfer small modular reactor (SMR) technology to India.
This enables the design and construction of these reactors in India.
Until now, US firms were only permitted to export nuclear reactors and equipment to India, but they were barred from engaging in design or manufacturing within the country.
National Infrastructure Projects & Priorities
Global
Growth in global energy demand surged in 2024 to almost twice its recent average
The report finds that global energy demand rose by 2.2% last year.
This is faster than the average annual demand increase of 1.3% between 2013 and 2023.
As a result, 80% of the increase in global electricity generation in 2024 was provided by renewable sources and nuclear power.
Together these contributed 40% of total generation for the first time.
Nuclear power capacity additions reached their fifth highest level in the past three decades.
Global renewable energy capacity hits record expansion
Global renewable energy capacity increased 15.1% year-on-year in 2024.
Asia led with 421.5 GW in capacity additions, then Europe (70.1 GW) and North America (45.9 GW).
US
Microsoft Pulls Back on Data Centers From Chicago to Jakarta
The software company has recently halted talks for, or delayed development of, sites in Indonesia, the UK, Australia, Illinois, North Dakota and Wisconsin.
It’s hard to know how much of the company’s data center pullback reflects expectations of diminished demand versus temporary construction challenges (e.g shortages of power and building materials).
Dow and X-energy submit for construction permit for nuclear project in Texas
Chemical firm Dow and X-energy Reactor Company have submitted a construction permit application.
It is for a proposed nuclear project in Seadrift, Texas.
The companies said the project is supported by the U.S. Department of Energy's (DOE) Advanced Reactor Demonstration Program (ARDP).
This aims to accelerate the deployment of advanced reactors through cost-shared partnerships with U.S. industry.
Permit approval can take up to 30 months.
India
India FY25 new highway construction likely hit 7-year low as focus shifted to upgrades
The Ministry of Road Transport and Highways (MoRTH) has set an overall construction target of 10,000-10,500 km for the year.
However nearly 30%, or about 3,000 km, will be dedicated to strengthening existing roads rather than adding fresh highway capacity.
MoRTH data shows that of the 12,349 km of highways built in FY24, 2,708 km consisted of strengthening projects
UK
Government to build over 1,000 flood schemes across the country
Over 1,000 flood schemes will be built or repaired to protect homes and businesses.
£2.65 billion will be invested over two years towards the construction of new flood schemes and the repair and maintenance of existing ones.
News
The AI Data-Center Boom Is Coming to America’s Heartland (WSJ)
Cleantech Construction Map 2025 (Cemex)
Lawsuit accuses United Rentals, other construction equipment firms of price-fixing
3D printer used to construct train station building in Japan
Barcelona Becomes Ground Zero for Europe’s Housing Dilemma
Spain is confronting a housing crisis that has rapidly become one of the most acute in Europe.
Since 2015, nearly one-tenth of the country’s housing stock has been bought by investors or converted to tourist rentals.
Thailand Probes Collapse of Only Skyscraper to Fall in Quake
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.