The third quarter of 2025 has rewritten the rules of the game for investment in construction technology (Contech) and Cleantech. Despite a slight dip in the number of transactions, the sheer volume of capital invested skyrocketed, driven by significant late-stage rounds.
Q3 2025 recorded a total of 75 transactions. While this represents a -10% decrease in the number of deals compared to Q3 2024, the total capital mobilized was historically high, reaching $5,963.4 million.$1,513.4 million. This significant increase demonstrates that, while the capital environment remains selective, funding is also allocated into mature, when solutions offer high-impact and value.
It is worth highlighting two acquisitions which, although not included in our analysis, deserve special mention: CRH’s $2.1B acquisition of Eco Materials and Verisk’s $2.35B acquisition of Acculynx
The distribution of underscores a clear preference for large-scale efficiency and technologies that are redesigning the construction value chain.
Vertical | % of Total Invested Volume | Key Insight |
Future of Construction | 46% | Leads investment, focused on automation and disruptive technologies. |
Enhanced Productivity | 33% | Solutions optimizing project management and operational efficiency. |
Supply Chain | 19% | Continued investment in material logistics and platform solutions. |
Green Construction | 2% | Captured only $33M across 9 transactions, indicating a slowdown. |
Construction’s Future solidified its position as the primary destination for capital, with a particular emphasis on automation and robotics for job sites.
In contrast, the Green Construction vertical experienced a noticeable slump. Despite the drop in investment volume for this vertical, trends indicate growing activity in cleantech solutions that intersect with the built environment (e.g., building energy management and industrial decarbonization).
The common thread linking all verticals is Artificial Intelligence: 83% of the deals involved startups applying AI in their business models, reinforcing the industry’s mantra: “Adapt or die to stay competitive.”
The global Contech market remained heavily concentrated in North America, an unbroken trend that continues to set the pace for the ecosystem.
The U.S. Dominance: Within North America, the United States was the main engine, accounting for an overwhelming 80% of total transactions, deploying $1.21 billion across 42 deals in the quarter.
Q3 2025 was characterized by the maturation of capital, reflected in several high-volume, late-stage transactions:
A key highlight of the quarter was the disproportionate influence of Strategic Investors (corporates or CVCs). Although they only participated in 15 deals, these transactions represented a significant 44% of the total net invested capital. This data underscores that construction and industrial firms are using their VC arms to make large, definitive bets on solutions they deem essential for their future success.
Do you feel the planet calling? You might not see it, but the signs are clear, and the global community is responding with an imperative: we must transition towards a development model that reduces carbon emissions. This isn’t just a conversation for governments and climate summits; it’s a reality directly impacting one of the pillars of modern civilization: the construction sector.
As professionals and key players, we know our current impact is massive. The sustainability of tomorrow’s cities hinges on our decisions today. Therefore, this blog is dedicated to exploring how the sector must not only adapt but also lead the transformation towards a low-carbon future.
Let’s be frank. The Low-Carbon Economy is, in essence, a system that seeks to minimize the emission of greenhouse gases (GHG), especially CO2, through innovation, policy changes, and modifications in consumption and production habits. It’s a model that pursues an accentuated and long-term decarbonization across all productive sectors.
But as you read this, you might be asking: why is this vital for construction?
The answer is simple, though it might not always sound good: our industry is a central part of the problem, and therefore, has the potential to be a central part of the solution. From the extraction of raw materials to a building’s end-of-life, every stage of our work leaves a significant carbon footprint. However, we can reduce this by incorporating small changes that will undoubtedly become the essence of a new era marked by actions aimed at reducing carbon emissions.
This transition is intimately linked to global sustainability goals. The Paris Agreement compels us to limit global warming to 1.5ºC, requiring carbon neutrality by mid-century (net-zero emissions by 2050). The UN’s 2030 Agenda, with its SDG 9 (Industry, Innovation and Infrastructure) and SDG 11 (Sustainable Cities and Communities), directly challenges us. If we don’t act, it will be impossible to meet global ambition.
A low-carbon economy is much more than just installing solar panels, though that’s certainly a positive step. But what if we look beyond? It involves systemic re-engineering. It implies transforming the energy and production matrix to utilize resources and energy more efficiently, or to source them directly from CO₂ emission-free sources. Its main pillars are:
For carbon-intensive industries like ours, this implies a radical transformation. It’s no longer enough to be “less bad”; we need to be net-zero. This means re-evaluating every brick, every steel beam, every cubic meter of concrete, and every hour of a building’s operation.
With the data in hand, we must be critical. We have the capacity to turn things around, but first, we need to understand the magnitude of the challenge.
According to UNEP reports, the buildings and construction sector was responsible for approximately 34% of global energy and process-related CO2 emissions in 2024. This percentage is divided into two critical challenges:
Current Problems:
The need for transformation is twofold: technological (new materials, digitalization) and cultural (mindset shift, training). We must build the infrastructure the world needs without mortgaging the Earth’s future.
The good news is that change is already underway. Innovation, driven by technology, has become our main ally in decarbonizing the sector. We are witnessing the rise of green Contech (Construction Technology).
Key Technologies for Decarbonization:
Corporate and Venture Capital (VC) funds play a crucial role. By investing in these high-risk, high-impact solutions, they act as catalysts, accelerating the technology adoption curve and providing a climate return, not just a financial one.
Examples of Startups Leading the Transition:
From Strategy to Action: Cemex Ventures’ Commitment to “Future in Action”
In this decarbonization journey, corporate companies with global reach have unique potential. Cemex Ventures has made a firm commitment to Green Construction as one of its main investment verticals.
Cemex Ventures is not just investing; it is actively seeking technologies compatible with its parent company’s decarbonization strategy, “Future in Action“. This strategy has ambitious goals, including a substantial reduction in CO2 emissions from cement manufacturing by 2030, with the ultimate goal of being a net-zero emissions company by 2050.
This translates into accelerating projects that directly contribute to:
The inclusion of Green Construction startups in their annual Top 50 Contech Startups report is a clear declaration of their vision. It shows the way for capital and innovation to target the most critical points of the industry’s carbon footprint.
The sector faces a massive challenge, but the response from innovation is encouraging. What are the emerging trends that will define the next decade?
The decarbonization of construction is a multi-trillion-dollar market, and those who are first to offer scalable and affordable solutions for cement, steel, and waste will be the leaders of the next industrial generation.
What would happen if the buildings around us didn’t just serve a functional or habitable purpose, but also actively and almost imperceptibly contributed to improving the quality of life for the people who live in them?
This blog aims to establish a manifesto for urban sustainability, based on three principles or pillars that redefine the way we think about construction and its projects.
Write this down:
Design with Conscience, Build with Innovation, and Operate with Resilience.
After this statement, you might be asking yourself: What exactly is urban sustainability in construction?
Urban sustainability in construction refers to the action or process of designing, planning, and building cities and structures that are respectful of the planet, the environment, and the people who live in them.
We know your mind immediately goes to vertical gardens, but allow us to say you’re wrong, it goes much further.
It considers the entire life cycle of a building or construction, from its initial design to its use and potential future demolition.
Additionally, the concept of urban sustainability has a friendly, hopeful, and “friendly” connotation.
Remember that, according to the International Energy Agency, buildings are responsible for 32% of global energy consumption, in addition to 34% of CO2 emissions.
Imagine a city where its buildings inspire, not only for being aesthetically beautiful but also for taking care of their inhabitants.
It would be spectacular, right? Well, that is what urban sustainability is all about.
It’s about creating designs that make the most of natural light, thus reducing the need for electricity. Or designs where the materials used do not harm the environment, but are respectful, efficient, and can be reused.
These points and many more are what make a building, an urban architectural component, respectful or not of its surroundings.
Now ask yourself these questions: Does your building generate a lot of waste? Does it consume too much energy? Is it a green space that helps improve the quality of the environment? Does the urban composition of your city allow for the use of bicycles and other non-polluting means of transport?
Keep reading, and we’ll tell you more about this very interesting topic.
Sustainable urban construction goes far beyond the aesthetic aspect.
A sustainable building is, in essence, one that is capable of redesigning and healing the composition and functionality of the city itself , shaping the built urban environment to be more harmonious, efficient, and healthy for its inhabitants.
This perspective allows us to see each construction project as an opportunity to solve urban sustainability problems.
Bioclimatic Integration Bioclimatic integration is the art of designing buildings that adapt to the local climate we are in. It’s about using orientation, shape, and materials so that a building is thermally responsible.
That is, it has the ability to cool itself in summer or heat up in winter in an autonomous, natural way, and consequently reduces the need to use energy or fuels for that purpose.
Surely you have seen news about cities that use asphalt and concrete buildings that absorb and retain heat, creating the so-called “heat island effect.”
A bioclimatic design helps you mitigate temperatures, for example by using windows specifically oriented to capture sunlight in winter and by using overhangs to create shade in summer.
Regenerative Spaces The next step in the evolution of sustainable design in cities is the concept of regenerative spaces.
Never heard of them? These spaces are those in charge of minimizing damage. Urban projects that actively seek to improve the environment, such as buildings that act as air purifiers, water collectors, or even habitats for local fauna.
Another very widespread option are green roofs and facades, which can now be seen as a common element in many cities : spaces that absorb CO2, release oxygen, reduce stormwater runoff, and create cool microclimates.
Did you know that the surface temperature of a green roof can be 13.3°C lower than that of conventional roofs, and can reduce nearby air temperatures by up to 11.1°C?
Materials with a Story Finally, sustainable urban design forces us to rethink materials.
It’s not just about their durability or cost, but about their origin and environmental impact.
The use of ethically sourced, recycled, or even carbon-capturing materials gives the building a story and a purpose. By choosing materials with a low carbon footprint, you are not only building, but also leaving a positive footprint on the planet.
The construction phase is no longer just about building walls and putting up roofs. Today, the construction site has been transformed into an intelligent ecosystem where technology and processes work in harmony to optimize every step , from the arrival of the material to the last touch-up.
The goal is to make every process count in order to achieve a more efficient, safe, and sustainable construction.
Collaborative Robotics Now we ask you to forget about science fiction movies… No “Sonny”-type robots from “I, Robot.”
Collaborative robotics takes care of repetitive, heavy, or dangerous tasks, such as demolition, welding, or transporting heavy materials.
This not only improves safety on the construction site but also frees up workers to focus on jobs that require more complex skills, creativity, and decision-making.
It’s a perfect synergy between the precision of the machine and human experience.
Large-Scale 3D Printing 3D printing is not just for small prototypes. On a large scale, this technology is revolutionizing construction by allowing the creation of entire structures, such as walls or even complete houses, quickly and with minimal waste.
According to the Construction Systems Lab at ETH Zurich, 3D printing in construction can reduce material waste by more than 60% compared to conventional construction methods. This process is not only efficient, but also allows for more complex and organic designs that would be impossible with traditional methods.
The growth of this sector is a clear indicator of its impact. According to Allied Market Research, the global 3D printing construction market is estimated to soar from $1.4 billion in 2021 to an impressive $750.8 billion by 2031. This rapid rise is not just a number, but symbolizes a total transformation in the way we conceive, plan, and build the cities of the future.
Data Logistics Data logistics in construction is like having a brain for the job site.
Using data analytics, the entire supply chain can be optimized to know exactly when and where materials are needed. This avoids wasting resources, since supplies arrive just in time, without excess stock.
In addition, by intelligently planning deliveries, traffic can be reduced in cities and, therefore, pollution and noise, making the construction process more respectful of the urban environment.
A truly sustainable building doesn’t end its life cycle upon inauguration. The last pillar of conscious construction focuses on resilience and the structure’s ability to evolve and adapt to its environment over time. We are talking about buildings that are not only built, but are maintained, regenerated, and, at the end of their life, transformed to continue being useful.
Self-Sufficient Buildings The ultimate expression of resilience is self-sufficiency. A self-sufficient building integrates systems that allow it to generate its own energy, such as solar panels or wind turbines, and manage its own water resources through rainwater harvesting and gray water treatment. This autonomy not only reduces its carbon footprint, but also makes it less vulnerable to service interruptions, guaranteeing its functionality and comfort in the long term.
Digital Twins for Efficiency Technology is a key ally for a building’s longevity. Digital twins are virtual 3D replicas that connect with sensors in the real structure to monitor every aspect , from energy consumption and air quality to temperature and use of spaces. This tool allows building managers to make decisions in real time to optimize their performance , identify problems before they worsen, and ensure the structure operates with maximum efficiency throughout its useful life.
A fact that illustrates its power: it is estimated that the use of digital twins for building management can reduce energy consumption by up to 35%.
Design for Disassembly: The Art of Disassembly
Design for Disassembly is a design philosophy that challenges the traditional way we think about the end of a building’s life. Instead of viewing a structure as something that will be demolished, it is conceived as a set of valuable components that can be recovered and reused. It is the idea of an “inverse demolition,” where each part has a future purpose.
From Demolition to Dismantling Historically, the end of a building meant rubble, waste, and the total loss of the value of its materials. With design for disassembly, this reality changes. The goal is to create a “bank of materials” for future constructions. By designing buildings this way, it is estimated that up to 80-90% of their components and materials can be recovered and reinserted into the construction cycle, drastically reducing the amount of waste that ends up in landfills.
How is it achieved in practice? Making a building “disassemblable” requires meticulous planning from the design phase. It is a series of conscious decisions that facilitate the recovery of materials:
In essence, design for disassembly is a commitment to longevity and circularity. A building is not the end of the story of the materials, but one more chapter in their useful life, ensuring that value and resources are preserved for future generations.
Urban sustainability in construction is not an option, but an ethical imperative and an opportunity to have healthier and eco-friendlier urban environments.
Throughout this journey, we have seen that it is based on three fundamental pillars that invite us to go beyond simple building:
It is time to embrace a future built with purpose. A future where our cities are vibrant and diverse ecosystems, designed to flourish in harmony with the planet, building spaces that are more ecological, more just, and more beautiful.
Are you ready to build that future?
The quest for sustainable energy solutions has become a global priority, aiming to both mitigate climate change and ensure energy independence. In this context, geothermal energy emerges as one of the most promising yet often underestimated renewable sources. Unlike other renewables whose production depends on the intermittency of the sun or wind, geothermal energy harnesses the inexhaustible heat emanating from our planet’s interior—a constant, perpetual resource available 24/7, 365 days a year.
The use of this “energy treasure” has evolved from large-scale electricity generation in volcanic areas to its direct application in building climate control, making it a fundamental pillar of sustainable construction. Integrating geothermal energy into the design of homes and buildings is no longer a mere trend but a real necessity to achieve energy efficiency goals and drastically reduce the carbon footprint.
Geothermal energy is a renewable power source that harnesses the natural heat from within the Earth. The word itself comes from the Greek words geo (Earth) and therme (heat), literally meaning “Earth heat.” This incredible heat is a result of the continuous decay of radioactive isotopes in the Earth’s core, which creates immense thermal energy.
This heat is always being produced and can be accessed in various ways, from deep below the surface in areas with volcanic activity or hot springs, to the more accessible, shallow ground in almost any location. Geothermal power plants, for example, drill deep wells to tap into reservoirs of hot water and steam, which are then used to spin turbines and generate electricity.
Think of it like a giant, natural furnace beneath our feet. Unlike fossil fuels, which are finite and release greenhouse gases when burned, geothermal energy is sustainable, clean, making it a powerful tool in the global shift toward a more sustainable future.
This blog will explore the six fundamental keys that explain how this technology is transforming the construction sector, from its basic principles and applications to its economic viability and exciting future.
The operation of low-enthalpy geothermal energy, the type used in buildings, is based on a surprisingly simple principle: heat naturally moves from a warmer place to a cooler one. The Earth’s crust acts like a massive heat accumulator, keeping a stable and moderate temperature just a few meters below the surface.
To harness this heat, a system of underground pipes and an indoor geothermal heat pump is used. In winter, the pump extracts heat from the ground and transfers it into the house for heating. In summer, the process reverses: the pump dissipates heat from the building back into the cooler ground. This energy exchange, which involves no combustion, is the heart of the system.
The efficiency of these systems is exceptional. A geothermal system can generate 3 to 5 units of thermal energy for every one unit of electricity it consumes. This is far superior to conventional heating systems. The secret to this efficiency lies in the stable ground temperature, which allows the heat pump to work with less effort and consume less electricity.
One of geothermal’s biggest advantages is its ability to consolidate all of a building’s thermal needs into a single system. A single installation can provide heating, cooling, hot water, and even heat a pool.
This multifunctionality simplifies building design and reduces the need for multiple, separate systems. Plus, since most of the installation is underground, there are no noisy or unsightly components to see or hear.
The transition to sustainable construction requires an honest look at each technology. Geothermal, while offering extraordinary potential, presents both undeniable advantages and a few challenges.
Advantages:
Challenges:
While the initial cost of a geothermal system is considerable, a long-term analysis shows that it’s an investment, not an expense. The significant energy savings mean the system can pay for itself in a matter of years.
Despite the higher initial price, geothermal offers the lowest annual operating cost, superior efficiency, and the ability to provide cooling—something gas systems can’t do. The availability of government subsidies and incentives is also key to making the technology more accessible.
To truly understand geothermal’s potential, we need to look at how it has been successfully applied in real projects. These case studies not only prove technical viability but also act as a powerful signal to the market.
These emblematic projects, led by the public sector and forward-thinking corporations, prove that geothermal systems work, are scalable, and live up to their promises of savings and sustainability. This demonstration of viability is crucial for wider adoption.
The future of geothermal isn’t limited to existing technologies. Innovation is breaking down the barriers that have historically slowed its growth, making this energy source viable almost anywhere and at an increasingly competitive cost.
These technological advancements are democratizing access to subsurface energy. Government support and the reduction of regulatory barriers will be key to scaling and mass adoption of these innovations, transforming the energy landscape of construction.
Geothermal energy is much more than a renewable energy source; it’s a comprehensive and strategic solution that is redefining the standards of sustainable construction. From the surprising efficiency of its heat pumps to its functional versatility and reliability, geothermal stands as a superior and sustainable option.
While the initial investment is a challenge, a long-term analysis demonstrates a clear return on investment. And with innovations like EGS and foundation heat exchangers, geothermal is on the verge of becoming a universally applicable and fundamental alternative for building a more efficient, clean, and independent future. The answer to a sustainable future isn’t just in the sky, but also, inexhaustibly, right under our feet.
What part of geothermal energy do you find most interesting?
Digitalization isn’t an option; it’s a necessity. IoT in the construction industry is at the forefront of this transformation.
Being everywhere, at all times, during every stage of a construction process might seem impossible. But in a world where every click, sensor, and data point matters, the industry isn’t being left behind. Today’s challenges are numerous, ranging from a shortage of skilled labor to a growing demand for sustainability and efficiency. These challenges are pushing companies to rethink their approach to the future, and a large part of that future is connected thanks to IoT.
We’re talking about the Internet of Things (IoT), that network of everyday objects, from a crane to a hard hat or a laser measure, equipped with sensors, software, and other technologies that let them connect and exchange data with other devices and systems over the internet. Imagine a job site where every element can “talk,” where data flows in real time, and where decisions are made on a much more solid and accurate foundation. This isn’t science fiction; it’s the reality that IoT is building in the industry.
Construction projects are complex, with many moving parts, tight deadlines, and margins that are often compromised by unforeseen events. How many times has a delay in material delivery, a machine failure, or a site accident derailed the entire schedule? IoT is emerging as a strategic ally to minimize these risks and maximize performance. It’s not about adding technology for technology’s sake but about implementing solutions that solve real problems, optimize resources, and ultimately improve profitability and competitiveness.
In this article, we’ll explore the five key areas where IoT is proving to be a radical game-changer in construction. These aren’t just trends; they’re established applications that are redefining what it means to build in the 21st century.
Get ready to discover how this technology not only modernizes your projects but also makes them safer, more efficient, and more sustainable.
Safety is, without a doubt, the number one concern on any construction project. Accidents, in addition to the incalculable human cost, lead to work stoppages, investigations, penalties, and a negative impact on a company’s reputation. IoT presents itself as an extraordinarily powerful tool to transform safety management from a reactive to a proactive approach.
Sensors for a Safer Environment:
A report from the U.S. Bureau of Labor Statistics revealed that the fatal accident rate in construction remained relatively stable between 2011 and 2020. However, non-fatal accidents are still a serious problem, with injuries resulting in thousands of lost workdays each year. IoT can help reduce these numbers.
Imagine hard hats equipped with sensors that detect if a worker has suffered a blow or a fall and immediately send an alert to the supervision team. Or smart vests that monitor the heart rate and body temperature of workers in extreme conditions, providing a warning before heat stress becomes a risk. These devices can even identify if a worker gets too close to a danger zone or moving machinery, emitting a loud or vibrating alarm to warn them. Integrated GPS technology allows for quick location of workers in an emergency, which is crucial on large sites or in tunnels and confined spaces.
Structural and Environmental Monitoring:
Beyond personnel, IoT also looks after the safety of the job site itself. Tilt sensors on scaffolding and temporary structures can detect unusual movements that might indicate a risk of collapse. Vibration meters are installed in neighboring buildings during excavations or demolitions, ensuring that safety limits aren’t exceeded and preventing damage to third-party properties. Weather sensors, meanwhile, monitor real-time conditions like wind, rain, and temperature, alerting teams about situations that could compromise the stability of cranes or the safety of certain operations (like pouring concrete in extreme hot or cold climates).
Managing Risk Zones:
Using IoT beacons and geofencing (virtual fences), you can mark off restricted or high-risk areas. If an unauthorized worker or one without proper training tries to enter one of these zones, the system can issue an alert or even temporarily deactivate certain machinery. This is especially useful in areas where dangerous materials are handled, work is done at height, or large equipment is operated.
Training and Safe Behavior:
The data collected by IoT devices doesn’t just help with reacting to an emergency; it also helps prevent them. Analyzing workers’ behavioral patterns, the highest-risk areas, or the most frequent types of incidents allows safety managers to design more specific and effective training programs, identify weak points in safety protocols, and reinforce good practices. Ultimately, it’s about creating a data-driven safety culture where prevention is the backbone of all operations.
Investing in IoT safety isn’t an expense; it’s an investment that protects lives, reduces accident-related costs, and improves a company’s reputation, an invaluable intangible asset.
Productivity in construction is a constant challenge. Managing a vast inventory of machinery, tools, and equipment is a headache that often results in wasted time and money. Where’s that cement mixer? Is the jackhammer in maintenance or does Juan have it in the south zone? IoT eliminates these unknowns, transforming asset management into a transparent and efficient process.
Real-Time Location and Tracking:
A study by Accenture estimated that a lack of visibility in the supply chain and asset management can lead to a loss of up to 23% of productivity on a job site. Small IoT beacons, like RFID tags or GPS trackers, are attached to heavy machinery, vehicles, hand tools, and even high-value materials. This lets you know the location of every asset at all times. Supervisors can see the exact location of each piece of equipment on a digital map, optimizing its distribution and use. The minutes, or even hours, lost looking for a tool or waiting for a machine to arrive are gone. This is especially critical on large sites with multiple work zones.
Optimizing Machinery Use:
Beyond location, sensors on machinery can collect data about its use: operating hours, fuel consumption, speed, workload, etc. This information is vital for understanding which machines are being used to their full capacity, which are underutilized, and which might be experiencing excessive wear and tear. With this data, companies can plan preventative maintenance more effectively, prolong the lifespan of their equipment, and avoid costly, unexpected breakdowns. It also allows for optimizing the allocation of machinery to different tasks, ensuring the right equipment is always available where and when it’s needed.
Reducing Theft and Loss:
Theft of machinery and tools on job sites is a persistent problem that generates significant economic losses. IoT systems with integrated GPS act as a powerful deterrent and an effective recovery tool. If a piece of equipment leaves a defined “geofence” (the perimeter of the site), an alert is triggered, and its location can be tracked in real time, making recovery easier. This not only minimizes losses but also reduces insurance costs and the downtime involved in replacing a stolen piece of equipment.
Predictive Maintenance:
One of the most revolutionary advances of IoT in this area is predictive maintenance. Instead of performing scheduled maintenance or waiting for a machine to break down (reactive maintenance), sensors constantly monitor the performance and condition of key components. According to a McKinsey & Company report, predictive maintenance can reduce equipment maintenance costs by up to 40% and machine downtime by up to 50%. For example, they can detect a temperature increase in an engine, an unusual vibration in a component, or a drop in oil pressure. These anomalies, often imperceptible to the human eye, are early indicators of a potential failure. The system alerts maintenance teams to intervene before the breakdown occurs, avoiding unexpected stops and much more expensive repairs.
The ability to have a comprehensive, real-time view of all assets on a job site is a paradigm shift. It allows construction companies to make informed decisions, optimize their resources, and ultimately, drastically increase their productivity and operational efficiency.
The quality of a construction project is a company’s hallmark and the guarantee of durability and safety for the client. Furthermore, strict compliance with regulations is essential to avoid fines, delays, and legal problems. IoT offers powerful tools to supervise the quality of materials and processes and ensure that every step adheres to standards and regulations.
Environmental Condition Monitoring for Materials:
Many construction materials are sensitive to environmental conditions. Concrete, for example, requires a specific temperature and humidity to cure properly and achieve its optimal strength. IoT allows for the use of sensors embedded in the concrete or placed in the curing area to continuously monitor these variables. If conditions deviate from the ideal, the system can alert teams to take corrective action (cover the concrete, apply water, etc.), preventing defects that would compromise structural integrity. According to a study presented at the ACI Virtual Concrete Convention, in a session titled “The Concrete Industry in the Era of Artificial Intelligence,” IoT temperature monitoring for concrete was shown to reduce defects and increase material strength, which translates to a 15% to 20% cost savings in repairs and rework.
Quality Verification in Execution:
Sensors can be integrated into tools and equipment to verify the correct execution of tasks. For example, a smart torque wrench can record that a screw has been tightened to the exact torque required by the manufacturer. Position sensors can verify that prefabricated elements are being installed with the necessary millimeter precision. For paint or coatings, thickness sensors can ensure the correct amount of material is applied. This data not only guarantees quality at the moment but also creates an immutable, auditable record of the entire process.
Automatic Documentation and Traceability:
One of the biggest headaches in construction is generating and managing documentation. IoT simplifies this process enormously. Every piece of data collected by sensors, concrete curing temperatures, structural settlement readings, torque of joints, etc., is automatically recorded and stored in a centralized database. This creates a “digital twin” of the project, a virtual replica with all relevant, real-time information about its status and the processes applied. This automatic traceability is invaluable for audits, quality certifications, and, in case of future problems, for quickly identifying the root cause.
Regulatory Compliance and Automatic Alerts:
Compliance with construction, safety, and environmental regulations is complex and varies according to local legislation. IoT systems can be programmed with these requirements, issuing automatic alerts if any metric deviates from the permitted thresholds. If noise levels exceed what’s allowed during certain hours, if dust emissions go over limits, or if the stability of a trench approaches a critical point, the system detects and notifies immediately. This not only prevents penalties but also demonstrates a proactive commitment to legality and good practice.
By integrating IoT into quality management, construction companies not only elevate the standard of their projects but also build a reputation for excellence and reliability, generating trust among clients and investors.
Logistics on a job site is a complex network of suppliers, transporters, and temporary storage. Delays in material delivery, a lack of inventory visibility, and inefficient resource management can create bottlenecks that paralyze a project’s progress. IoT introduces unprecedented transparency into the supply chain, transforming a historically opaque area into a precise orchestration.
Tracking Materials from Origin to Site:
Imagine knowing exactly where pallets of bricks, tons of cement, or prefabricated panels are from the moment they leave the factory until they arrive at the site. IoT devices, such as RFID tags or low-cost GPS sensors, are attached to packages or containers, allowing for real-time tracking of their location and status. Project managers can view the route of each shipment on a dashboard, estimate arrival times with greater accuracy, and anticipate potential delays. This total visibility reduces uncertainty and allows for much tighter planning.
Real-Time Inventory Management:
Once on site, IoT continues its work. Temporary warehouses and storage areas can be equipped with sensors that detect the entry and exit of materials. This allows for an instantly updated digital inventory, eliminating the need for manual counts, which are error-prone and time-consuming. Systems can automatically alert you when the levels of a critical material fall below a pre-established threshold, triggering a purchase order or a reminder to restock. The problem of running out of an essential material in the middle of the day or having excess stock that takes up space and creates unnecessary storage costs is a thing of the past.
Optimizing Storage and Laydown Areas:
Knowing the exact inventory and location of each item allows for more intelligent management of a job site’s limited space. Planners can optimize the layout of materials, placing the most used ones closer to their points of consumption and ensuring that access paths are clear. This not only improves efficiency but also contributes to safety by reducing obstacles and unnecessary movements.
Reducing Waste and Spoilage:
Visibility into inventory and material tracking also has a direct impact on waste reduction. By knowing exactly what materials are available and in what quantity, you can optimize cuts and usage, minimizing leftovers. Additionally, if storage conditions (temperature, humidity) are monitored, you can prevent damage or deterioration of sensitive materials, reducing spoilage from poor condition. The ability to track the shelf life of perishable or expiring materials also ensures they’re used before they go bad.
Coordination with Subcontractors and Suppliers:
The real-time data exchange about the supply chain facilitates better coordination with all involved parties. Subcontractors know when they can expect the materials they need for their tasks, and suppliers can adjust their routes and deliveries more efficiently. This fluid collaboration translates into reduced waiting times, greater agility in decision-making, and, ultimately, a more harmonious and timely project execution.
Smart logistics driven by IoT is a fundamental pillar for eliminating dead time, reducing operational costs, and ensuring that projects progress on schedule without unpleasant surprises.
In a sector with often tight margins, cost reduction is a constant priority. At the same time, sustainability has become an undeniable requirement, both due to regulations and social demand and corporate responsibility. IoT is emerging as a powerful dual-purpose tool, capable of optimizing economic and environmental resources simultaneously.
Optimizing Energy and Water Consumption:
One of the most direct applications of IoT for cost reduction and sustainability is resource consumption monitoring. According to a U.S. Environmental Protection Agency (EPA) study, the construction industry is responsible for approximately 39% of total global energy consumption.
Smart sensors in a job site’s electrical panels can record the real-time energy consumption of each piece of machinery, lighting, temporary heating/cooling systems, and more. Similarly, connected water meters can track exact usage. This data allows you to identify inefficient consumption patterns (unnecessary machinery running, water leaks, excessive lighting) and take corrective action. For example, you can program automatic shutdowns of lights in unoccupied areas or adjust equipment power when maximum capacity isn’t needed. The reduction in energy and water consumption directly translates into significant savings on bills and a lower carbon footprint for the project.
Smart Waste Management:
Waste management on a job site is complex and costly. Smart containers equipped with level sensors can alert you when they’re full and need to be picked up, optimizing trash truck routes and avoiding unnecessary trips. This not only reduces transport costs and CO2 emissions but also ensures that waste is removed on time, keeping the site cleaner and more organized. Furthermore, analyzing the types of waste generated allows you to identify areas where more can be reduced, reused, or recycled more effectively, promoting a circular economy in construction.
Predictive Maintenance to Extend Equipment Lifespan:
As we’ve already mentioned in the productivity section, predictive maintenance extends the lifespan of machinery and tools. A machine that breaks down prematurely not only creates a repair cost but also requires the purchase of replacement parts or, in the worst-case scenario, a complete replacement. By preventing breakdowns, IoT reduces the need to manufacture new equipment, which has a direct impact on the reduction of demand for natural resources and the energy associated with their production. It’s a clear example of how economic efficiency and sustainability go hand in hand.
Optimizing Routes and Travel Times:
Transportation vehicles for materials and personnel equipped with GPS and traffic sensors can optimize their routes to avoid traffic jams and reduce travel times. This translates to lower fuel consumption, a decrease in polluting emissions, and greater efficiency in the arrival of workers and materials. “Green” logistics is a key component for reducing the environmental impact of construction.
Data-Driven Decision-Making for Sustainability:
The set of data collected by IoT—from energy consumption to waste management and the lifecycle of materials—provides a solid foundation for making more sustainable decisions. Companies can evaluate the environmental impact of different design options, materials, or processes and choose those that minimize their ecological footprint without compromising the project’s quality or viability. This is not only good for the planet but also improves a company’s reputation and makes it more attractive to environmentally conscious clients and regulators.
IoT turns sustainability into a measurable and manageable pillar, demonstrating that building efficiently and responsibly is not only possible but also profitable.
While we’ve detailed the five most impactful improvements, the potential of IoT in construction goes much further. We’re only at the threshold of what this technology can achieve. The integration of IoT with other innovations like Artificial Intelligence (AI), Big Data, and Digital Twins is creating synergies that promise to revolutionize the sector even more.
According to a Statista report, the global IoT market in construction is expected to grow from $8 billion in 2022 to over $30 billion by 2030. This exponential growth is a clear sign of the sector’s confidence in IoT’s ability to drive efficiency and innovation.
Imagine a Digital Twin of your building that isn’t just a detailed 3D model but is alive with real-time data from thousands of IoT sensors. This twin can predict how the structure will react to different loads, simulate energy performance throughout its lifespan, or even alert you to the need for maintenance on a specific system years after construction. AI can analyze sensor data to automatically optimize equipment schedules, predict material demand, or identify risk patterns before they become problems.
Collaboration between machines, the autonomy of certain construction equipment, and the robotization of repetitive tasks are becoming realities, all enabled by IoT connectivity and data. Modular construction, large-scale 3D printing, and mass customization of projects will also benefit enormously from this data infrastructure.
Construction Productivity is more than just a buzzword. It’s the lifeblood of any project, the deciding factor that can mean the difference between a resounding success and a financial headache. In the competitive world of building, have you ever wondered why some projects finish on time and on budget, while others drag on endlessly? The answer often lies in one key idea: efficiency.
If you’re an industry professional, a construction company owner, a site manager, or an architect, you’ve likely asked yourself why your projects aren’t progressing as fast as you’d hoped. Does the feeling of watching deadlines stretch and costs skyrocket sound familiar? You’re not alone.
The construction industry, vital for economic development, often faces challenges that slow productivity.
In this article, we’ll explore how productivity isn’t just a metric but a strategy to optimize every brick, every hour of work, and every machine. From Cemex Ventures, we’ll share 5 essential keys to transform the way you manage your construction projects and supercharge productivity.
Dive into this article full of tips!
Did you know the first lesson in project management was learned the hard way in the Stone Age?
Imagine the first clans trying to build a stockade for protection. One of them, instead of choosing thick logs and setting them in solid ground, opted for thin branches and leaned them against the soft riverbank. The result: the first storm washed their “masterpiece” away without a trace, and they had to start from scratch.
This primitive example reminds us that, even in the age of technology, a bad choice during the planning phase can cause a project to literally disappear before it even begins.
An alarming 60% of construction projects suffer delays and cost overruns due to poor planning. For decades, the industry has clung to outdated, manual planning methods that are prone to error. The solution, however, is within our grasp: leveraging new solutions in the industry will significantly help us achieve more precise planning.
Building Information Modeling (BIM) is a perfect example. This technology allows you to visualize the project in 3D, detect design clashes, and optimize the construction sequence before a single brick is laid. By moving problems from the construction site to the office, you can save a significant amount of time and money. Additionally, project management software allows all team members to collaborate in real-time, efficiently allocate resources, and track progress from a single dashboard.
Just as the T-800 famously promised in the iconic movie Terminator, “I’ll be back,“ artificial intelligence (AI) has delivered on that promise, not as an apocalyptic threat, but as a new and transformative reality.
In recent years, AI has evolved from a futuristic concept into an indispensable tool across various industries, and the construction sector is no exception.
Traditionally, on-site decision-making has often been based on the experience and intuition of seasoned professionals. While this wisdom is invaluable, it can also lead to costly mistakes and a lack of objectivity.
This is where AI steps in, not as a luxury but as a fundamental tool to optimize processes and enable smarter, data-driven decisions.
AI is revolutionizing the industry in multiple ways:
Predictive Analytics: Using historical data from past projects, AI algorithms can accurately anticipate potential delays, unforeseen risks, and material needs. This enables project managers to shift from a reactive to a proactive approach, thereby mitigating problems before they occur.
Safety and Automation: Jobsite safety is a top priority, and AI enhances it significantly. AI-equipped drones monitor progress and detect deviations from the original plan, while robots automate repetitive and dangerous tasks like welding or heavy lifting. Furthermore, AI-powered safety systems can monitor the environment in real time to detect risks (such as the absence of personal protective equipment or the presence of intruders in high-risk zones) and alert workers instantly.
Design and Planning: Generative design software with AI can optimize architectural plans to maximize energy efficiency or minimize material waste, exploring thousands of options in minutes. This not only accelerates the design phase but also contributes to the sustainability of projects.
In short, AI is not here to replace construction professionals but to empower them, making jobsites more efficient, safer, and profitable than ever before.
Material waste is a global problem. It’s estimated that between 20% and 30% of construction materials are wasted on-site. This doesn’t just have a negative environmental impact; it also directly affects your profitability. Adopting Cleantech solutions is the answer.
Using sustainable materials, such as low-carbon concrete or recycled materials, not only reduces your carbon footprint but can also lead to long-term savings. Furthermore, using AI and inventory management software can help you predict exact material needs and drastically reduce waste. And let’s not forget the importance of waste management, with tools that help you sort and recycle construction waste.
One of the main causes of project delays is a lack of effective communication among on-site teams, the office, and subcontractors. While useful, traditional methods aren’t enough to manage the complexity of a construction project. The solution is to implement specific communication and collaboration platforms for construction.
Mobile applications allow you to share plans, photos, reports, and updates in real-time, ensuring all team members have the most current information. Digital twins, which are virtual recreations of the project, allow all stakeholders to have a unified view of the progress. Finally, platforms that integrate data from BIM, project management, and inventory eliminate information silos and ensure a seamless workflow.
Technology is a powerful tool, but without the right people to use it, its potential is wasted. Resistance to change and a lack of staff training can be a brake on the adoption of new technologies. That’s why investing in staff training and fostering a culture of innovation is crucial.
Offering Contech and Cleantech training to your workers will give them the skills they need to use new tools effectively. Additionally, you can create an incentive program to reward teams that achieve greater efficiency and productivity by using technology. Fostering a culture of innovation where experimentation and learning are valued is the best way to ensure your team is prepared for the future.
The technology is there, but are we preparing to use it?
Productivity in construction is no longer an option; it’s a necessity. Adopting technology isn’t an expense; it’s an investment that will allow you to reduce costs, shorten deadlines, and build more sustainably.
At Cemex Ventures, we are committed to finding and supporting the most innovative solutions. Join this movement and let us know about your solution or startup.
In the world of construction, infrastructure, and climate tech, the project lifecycle is a foundational framework that spans from initial concept to long-term asset management. It is typically divided into five critical phases: design, planning, construction, operation, and maintenance. Each of these stages presents unique challenges, ranging from resource allocation and scheduling to environmental impact and system efficiency.
In the nascent stages of machine learning, there was Moravec’s Paradox, an idea that in retrospect seems quite naive: it was thought that machines would struggle more with logical and computational tasks (like those used in structural design or resource optimization) than with skills that humans find “easy,” such as recognizing visual patterns on a construction site or understanding the complexities of a team conversation. As it turned out, computers quickly mastered the former, while the latter, incredibly complex computationally, posed a much greater challenge.
This paradox reminds us that, even in a sector as structured as construction, true innovation lies not just in automating what we already know how to do, but in the machines’ ability to “understand” and adapt to the complexities of the real world, where every brick and every decision has multiple implications. Today, machine learning allows us to optimize planning with complex algorithms and, at the same time, analyze drone images to monitor progress or predict infrastructure failures, tackling those very challenges Moravec’s Paradox taught us to underestimate.
As the industry faces increasing pressure to deliver smarter, greener, and faster projects, Machine Learning (ML) is quickly becoming a transformative tool. ML, a subset of artificial intelligence, enables systems to learn from large volumes of data and make accurate predictions without being explicitly programmed. In construction and cleantech, this means optimizing timelines, minimizing waste, and proactively anticipating system failures before they occur.
AI and machine learning could generate $1.2 trillion in annual savings for the global construction industry by 2030, largely by enhancing productivity, minimizing delays, and improving asset performance
Rather than relying solely on past experiences or manual processes, forward-thinking startups and contractors are increasingly turning to data-driven decision-making across the entire project lifecycle.
In this article, we’ll explore five high-impact applications of Machine Learning across each stage of a project’s lifecycle, and how these innovations are reshaping the future of construction and sustainability.
The design & planning phases are where key decisions are made that influence the cost, efficiency, and sustainability of a project. Machine Learning algorithms, especially those in the generative design field, allow architects and engineers to explore thousands of design permutations in seconds, optimizing layouts for energy performance, material usage, and cost.
Additionally, Machine Learning is being used to evaluate materials and construction techniques, identifying those with the lowest carbon footprint. According to the World Green Building Council, the building and construction sector accounts for 39% of global CO₂ emissions, highlighting the urgent need for intelligent design.
By integrating ML in early design decisions, firms can significantly reduce embodied carbon, improve energy efficiency simulations, and comply with environmental certifications more easily.
The construction phase is often where projects face the most volatility, weather, labor, materials, and logistics all contribute to unpredictability. Here, Machine Learning, combined with computer vision and IoT sensors, provides powerful real-time insights that help project managers stay ahead of risks.
Through camera feeds, drones, and LIDAR scanning, ML models can identify deviations from plans, detect safety risks, and predict delays or equipment failures before they occur.
According to a study by Deloitte, AI-powered solutions can reduce construction delays by up to 15% by proactively addressing errors in scheduling, planning, or execution.
Once a project is completed, the focus shifts to ensuring efficient and sustainable operation of the asset, be it a building, energy plant, or urban infrastructure. Here, Machine Learning offers a continuous optimization loop.
ML algorithms ingest real-time data from IoT-connected systems to automatically regulate consumption, improve comfort, and lower operational costs. This approach is key to achieving net-zero energy goals and complying with green building standards.
For example, smart buildings that implement ML for energy management can reduce energy consumption by up to 30%, according to the International Energy Agency.
Additionally, smart grids powered by ML allow for real-time forecasting of energy demand and supply, improving the reliability and resilience of renewable sources such as wind and solar. Some companies are leading this innovation, providing predictive analytics for grid optimization and asset dispatch.
The final stage of the lifecycle, maintenance and asset management is where Machine Learning delivers long-term ROI. Instead of scheduled or reactive maintenance, ML enables predictive maintenance: systems that anticipate failures before they happen and recommend the optimal time for intervention.
This is particularly valuable in critical infrastructure, such as solar panels, wind turbines, or large mechanical equipment. ML models trained on sensor data can detect micro-anomalies—vibrations, temperature shifts, voltage drops—that signal degradation long before a breakdown.
According to IBM, predictive maintenance powered by ML can reduce unplanned downtime by up to 50% and cut maintenance costs by 25%.
Startups like SAALG Geomechanics, Concrete Sensors, and Optimitive, backed by Cemex Ventures, are already being adopted across the construction and infrastructure sectors to automate maintenance processes, enhance safety, and extend asset life. These solutions leverage real-time data and machine learning to optimize performance, reduce operational risks, and deliver measurable efficiency gains throughout the asset lifecycle.
In the long term, this translates into lower OPEX, improved system reliability, and enhanced sustainability performance driven by continuous learning from data.
If your startup is innovating with cutting-edge AI or ML and has a vision to disrupt the status quo, get in touch today!
According to the National Safety Council, the sector faces some of the highest rates of workplace accidents and operational challenges. But safety risks are only part of the equation—construction projects are also exposed to financial, legal, and supply chain threats that can derail progress and impact profitability.
From pre-construction planning to final delivery, risks are inevitable at every stage of a project’s life cycle. In today’s increasingly complex and fast-paced environment, a proactive approach to construction risk management is no longer optional; it’s a strategic necessity.
In this article, we’ll break down the most common types of risks in construction and the most promising innovations to address them. Whether you’re an investor, contractor, or project owner, understanding these risks is key to delivering safer, more efficient, and more resilient projects.
Let’s dive in!
Before diving into the specifics, let’s start with the fundamentals. Construction risk management refers to the structured process of identifying, assessing, and addressing potential risks that could impact the successful delivery of a construction project. These risks can be related to safety, cost, schedule, quality, legal compliance, or even environmental and geopolitical factors.
What makes this process particularly complex is the nature of the construction industry itself. Projects often vary widely in size, scope, location, and the number of stakeholders involved. This creates a highly dynamic environment where even small decisions can carry significant consequences, ranging from schedule delays and budget overruns to serious safety incidents or reputational damage.
By proactively managing risks, project teams can make more informed decisions, minimize disruptions, and improve overall project outcomes.
Construction projects are inherently complex, and as a result, various risks can arise during the project’s lifespan that can have a significant impact on its success. Here are the most common ones:
Delays, shortages, quality issues, or unexpected cost increases in materials can significantly disrupt construction timelines and budgets. These risks are particularly critical for long-lead or imported items.
To mitigate them, material lead times should be analyzed during early planning and integrated into the project schedule, with adequate buffers. Supplier capacity and reliability must be verified before contract award, especially for critical or custom materials.
Implementing a centralized material tracking system, linking procurement, delivery, and site usage, helps flag discrepancies early. For high-risk packages, consider sourcing from multiple suppliers to avoid a single-point failure.
Financial risks in construction stem from cost overruns, price volatility, delayed payments, and funding shortfalls. These challenges often arise from inaccurate cost forecasting, unstable market conditions, or the financial unreliability of key stakeholders. If not managed proactively, they can erode profit margins or even halt project execution.
Mitigation begins with realistic budgeting, incorporating contingencies for inflation and unforeseen expenses. Cost tracking throughout the project lifecycle enables early detection of deviations. Clear payment terms, timely invoicing, and active cash flow management are essential to maintaining financial stability and ensuring uninterrupted progress on site.
Operational and management risks stem from weak planning, poor coordination, and unclear responsibilities. These issues often lead to delays, resource conflicts, or rework, typically caused by miscommunication, slow decision-making, or missing project data.
To address these challenges, project teams should establish clear goals, assign roles with defined accountability, and maintain consistent communication across all stakeholders. Ongoing progress reviews, combined with proactive planning of labor, materials, and equipment, help ensure each phase is properly resourced and executed.
The use of practical project management tools also supports better visibility and control, making it easier to detect bottlenecks early and keep the project on track.
Legal and contractual challenges often stem from vague contract terms, inadequate documentation, or failure to comply with relevant regulations. These challenges can result in disputes, cost overruns, or project delays, particularly when responsibilities are poorly defined or agreements are not properly enforced.
To safeguard against such risks, contracts should be precise, legally sound, and tailored to the specific context of the project. Key clauses must clearly define scope, deliverables, payment conditions, timelines, and procedures for managing changes or resolving conflicts.
Consistent documentation of approvals, modifications, and formal communications helps ensure transparency and accountability throughout the project lifecycle. Clear contractual frameworks reduce uncertainty and strengthen collaboration between all parties involved.
Health and safety risks on construction sites can lead to severe injuries, project interruptions, or legal consequences. These risks are often linked to unsafe working conditions, lack of proper training, inadequate supervision, or failure to follow safety protocols.
Minimizing these risks requires a proactive safety culture embedded from the planning phase onward. This includes conducting regular risk assessments, enforcing compliance with local and international safety standards, and ensuring all personnel are properly trained and equipped.
Clear communication of safety procedures, daily briefings, and real-time reporting tools contribute to stronger incident prevention. A well-structured safety plan not only protects workers but also improves overall project efficiency and stakeholder confidence.
As construction projects become more complex and high-stakes, traditional risk management methods are no longer sufficient on their own. Emerging technologies are playing a critical role in enhancing visibility, accuracy, and responsiveness, enabling project teams to anticipate, monitor, and respond to risks more effectively than ever before.
Virtual reality (VR) and 4D modeling are transforming the preconstruction phase by offering immersive simulations of planned environments. Project stakeholders can visualize the result, identify design conflicts, and optimize phasing before breaking ground. This not only strengthens alignment among teams but also reduces costly rework and delays during execution.
AR brings digital elements into physical spaces, allowing users to overlay models onto real-world job sites. This technology enables real-time spatial coordination, helping teams detect discrepancies early, improve on-site planning, and enhance overall decision-making accuracy, particularly useful in complex or phased builds.
Wearables—such as smart helmets, vests, or wristbands—track worker location, monitor vital signs, and detect slips or falls in real time. These devices enhance site safety by providing immediate alerts in hazardous situations, supporting compliance efforts, and generating data that can be used to prevent future incidents.
As the corporate venture capital and open innovation unit of Cemex, we’re constantly seeking next-generation solutions with the potential to transform the construction industry, and here’s a great example from our investment portfolio. Meet Prysmex, one of the first startups that Cemex, through Cemex Ventures, invested in back in 2018.
This Mexican company is focused on improving health and safety in the workplace. Their platform leverages the Internet of Things and real-time data collection to detect and help prevent accidents on job sites. After a successful pilot, Cemex implemented Prysmex’s technology across all of its cement plants in Mexico.
Prysmex combines IoT technology with a collaborative web platform to enhance workplace safety. Its helmet-mounted devices monitor real-time environmental and geolocation data—such as noise, temperature, impacts, and gas presence—alerting workers to risks instantly. The platform also generates analytics and 3D visualizations to support proactive decision-making and prevent accidents before they happen.
If you’re an entrepreneur with a high-potential solution that can help reduce risks in construction, get in touch with us 👇
The first half of 2025 brings good news and some pretty exciting numbers when it comes to the investment landscape — and we’re here to tell you all about it. 📈
That said, the game has changed compared to previous years, with disruptive technologies taking center stage. Interesting, right? Here are some insights from the Cemex Ventures investment team, who’ve gathered the most relevant takeaways from 2025 so far.
Let’s go!
Q2 2025 was busier than ever! Investments totaled US$660.5M across 91 deals. Compared to Q2 2024, the total amount invested increased slightly by 19%, while the number of deals rose by 24%.
Taking a big-picture view of H1 2025, total investment volume reached US$2.023 billion, marking a significant 55% increase compared to the same period in 2024. Another clear sign of growth: the number of deals rose to 192, representing a 31% increase over the first half of 2024.
Technologies focused on productivity improvement and disruption are receiving the most attention in 2025 so far. The breakdown by investment amount in Q2 2025 across Cemex Ventures’ four market-driven opportunity areas was:
Key Note: It’s important to highlight the sharp drop in investment in sustainable solutions (Green Construction) during this period. Historically, this category has consistently ranked alongside Enhanced Productivity as one of the top two fastest-growing technology areas.
This phenomenon may be driven by reduced interest in the U.S., stemming from the new administration’s deprioritization of sustainability. Meanwhile, Europe continues to move toward a greener economy and industry, albeit at a slower pace. We’ll keep an eye on green construction deals in the coming quarters to better understand long-term trends.
45% of the deals were related to AI, which continues pushing productivity transactions this year.
In terms of investment share (%), Enhanced Productivity has clearly emerged as the dominant focus area, accounting for 45% of total funding. This includes solutions such as geotechnical analysis, BIM and digital twins, health and safety tools, and project tendering, among others.
Close behind was Future of Construction, capturing 30% of total investment, a notable resurgence for a focus area that has rarely held such a strong position. It includes technologies like 3D printing, robotics, smart buildings, and automated construction.
The majority of Contech and Cleantech investment in Q2 2025 was concentrated in North America, continuing a trend seen over the past few years, with figures very similar to those in Q2 2024 (2024: 55%, 2025: 57%). As usual, Europe followed, also maintaining a comparable share to the same period last year (2024: 30%, 2025: 29%).
North America & Europe are leading compared to other regions (86% of the deals) in the first half of the year
Below is the breakdown of investment amounts by region for Q2 2025:
Every month, our investment team tracks and compiles the top deals in Contech and Cleantech. Here are our top 3 picks:
Closing out H2, here are our main takeaways 🔍
Whether you’re a startup, SME, corporate, building professional, media journalist, or just plain curious, we’d love to hear from you! Reach out through our website or follow us on LinkedIn and X.
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We live in a world powered by data. Every click, transaction, and digital interaction generates information that needs to be processed, stored, and protected. Behing all this digital activity lie data centers: The invisible backbone of our increasingly connected lives. While they may not be the most visible elements of the tech revolution, their impact on sectors like construction is both profound and growing.
In this blog, we want to explore how data centers are reshaping the construction landscape, driving innovation, sustainability, and efficiency across the board.
Data centers have experienced explosive growth over the past decade. Gobal data center IP traffic is expected to reach 20.6 zettabytes annually by 2025, up from 6.8 zettabytes in 2026. This surge is largely due to cloud computing, the Internet of Things (IoT), Artificial Intelligence, and the massive amounts of data generated by businesses and consumers alike.
In response, the demand for a higher performance, energy-efficient, and scalable data center infrastructure has skyrocketed, presenting new challenges, and opportunities for the construction sector.
“That’s one small step for man, one giant leap for mankind.”
Neil Armstrong’s famous quote perfectly encapsulates the magnitude of the advancement that hyperscale data centers represent in cloud infrastructure. Just as the moon landing transformed our perception of space, these technological giants are redefining cloud computing, and of course, the construction industry.
Constructing a data center is no small feat. These facilities require highly specialized designs that balance energy efficiency, cooling requirements, physical security, and future scalability. Traditional construction methods have had to adapt quickly to meet the pace and precision these projects demand.
Data centers are profoundly impacting the construction sector. Their erection is no conventional task; it demands designs that meticulously consider energy efficiency, advanced cooling systems, robust physical security, and the capacity for future expansion. This demand has driven significant innovations in construction techniques:
Modular construction: This approach can slash build times by up to 50%, accelerating the deployment of critical infrastructure.
Prefabrication of components: Manufacturing components off-site ensures stringent quality control and enables faster, more efficient assembly on-site.
Digital Twins and BIM (Building Information Modeling): These advanced digital tools facilitate real-time monitoring and informed decision-making throughout the entire construction process, from planning to operation.
In essence, constructing a data center is akin to building a digital fortress. It must be secure, sustainable, and meticulously engineered for continuous, uninterrupted operation, often under extreme conditions. This specialization isn’t just transforming construction techniques; it’s also generating significant economic opportunities, fostering a strong demand for skilled workers proficient in high-tech systems and digital planning tools.
Beyond the physical infrastructure, the data residing within these centers is equally revolutionary for the construction industry. A data center isn’t just an information warehouse; it’s the digital brain that drives efficiency, innovation, and strategic decision-making at every stage of a construction project.
This meticulously collected and analyzed data ranges from detailed BIM (Building Information Modeling) models and energy performance simulations to real-time progress tracking, supply chain analysis, and machinery fleet management. By centralizing and processing this vast amount of information, data centers enable:
Optimized Design and Planning: Architects and engineers can access historical and real-time data to optimize designs, predict material behavior, and simulate building performance before the first brick is even laid. This minimizes errors, reduces costs, and accelerates delivery times.
Efficient Project Management: From resource allocation and task scheduling to inventory control, data provides complete visibility and proactive management. This leads to increased productivity, reduced waste, and better allocation of labor and machinery.
Predictive Maintenance and Operations: Once construction is complete, the stored data from the building’s digital twins allows for predictive maintenance, identifying potential failures before they occur and optimizing energy consumption. This extends building lifespans and significantly reduces operational costs.
Continuous Improvement and Sustainability: Data analytics on past and present project performance offer valuable insights for continuous improvement. This is crucial for developing more sustainable practices, reducing buildings’ carbon footprints, and meeting increasingly stringent environmental regulations.
Data centers are notoriously energy-intensive. In fact, they consume about 1% of global electricity use, according to the International Energy Agency. However, modern designs are prioritizing sustainability, integrating renewable energy sources, advanced cooling systems, and more efficient hardware.
For construction companies, this shift means adapting to new sustainability benchmarks and integrating green materials and systems from the outset. The design and delivery of environmentally conscious data centers is no longer optional, it’s expected.
The rapid expansion of data centers is also generating significant economic opportunities. The Uptime Institute estimates that the data center industry will require more than 300,000 new professionals globally by 2025 . For the construction industry, this translates into demand for skilled workers familiar with high-tech systems, energy regulations, and digital planning tools.
Additionally, regions that attract data center investments often see an uptick in infrastructure projects such as power grids, fiber optics, and transport upgrades. This creates a positive ripple effect across multiple sectors.
In the U.S. alone, data center construction spending surpassed $20 billion in 2023. That number is only expected to rise as cloud adoption deepens.
As with any booming industry, data center construction faces its share of hurdles. Striking the right balance between rapid deployment and long-term sustainability remains a challenge. Some of the key obstacles include:
Construction companies must navigate these complexities while delivering projects on tight timelines and budgets.
Looking ahead, the next wave of data center evolution will be shaped by trends like:
Data centers may be invisible to most people, but their presence is increasingly felt in every facet of modern life. For the construction industry, they represent a new frontier of complexity, creativity, and opportunity. As the digital economy grows, so does the responsibility of builders, engineers, and developers to create infrastructure that is not just functional, but also future-proof.
