Buildots raises $130M at $1B valuation on data center boom

Israeli construction software company Buildots has raised $130 million in a funding round that values the company at approximately $1 billion, according to Calcalist. The valuation represents more than a fourfold increase from the roughly $300 million valuation at which the company raised $45 million 18 months earlier.

The round was led by O.G. Venture Partners, founded by David Ofer, with participation from Lightspeed, Intel Capital, Mohari Ventures, Human Capital, Qumra Capital, Viola Growth, Poalim Equity, and investor Avigdor Willenz. The entire raise was primary capital with no secondary transactions and was structured entirely as equity rather than debt.

Why it matters

The surge in AI infrastructure spending has created an unexpected bottleneck: the physical construction of data centers. Companies racing to deploy AI models need server facilities built faster and more reliably than traditional construction timelines allow. Buildots' technology addresses this constraint by reducing project delays by 50% and saving an average of three months on schedules — savings that translate to millions of dollars on massive data center projects where every day of delay carries steep financial penalties.

How the technology works

Buildots has developed what amounts to a command-and-control system for construction sites. The company's approach centers on a 360-degree camera mounted on a construction manager's helmet. During regular site visits, the camera captures comprehensive data on physical progress, which the system analyzes to generate alerts when work falls behind schedule and recommend corrective actions.

The system creates a unified view of project status for all stakeholders, from developers to general contractors to subcontractors. It can flag issues ranging from drywall installation delays to missing electrical socket openings, aiming to identify bottlenecks before they cascade into major delays.

Data center construction drives growth

While Buildots serves residential and commercial construction projects including hospitals and student housing, the AI-driven data center boom has become a major catalyst. CEO Roy Danon told Calcalist that the company has tripled its revenue year over year and expects to maintain that pace.

"Two years ago, we began to see the first signs of the data center boom, but since then, we have received a significant backlog of orders from major companies in the U.S. and Europe," Danon said. "We have become one of the few companies in this field globally, which is why we are working on most of the data centers making headlines in the U.S."

Clients include Digital Realty, a data center operator with a $70 billion market capitalization that builds facilities for Nvidia, as well as Intel, STO Building Group, JE Dunn, Mortenson, Bouygues, and HOCHTIEF. Israeli construction firms Tidhar, Ashtrom, Azrieli, and Mivne also use the platform.

From project-based to portfolio deals

The company is seeing customers shift from single-project implementations to multi-year agreements covering large construction portfolios. This transition reflects both the technology's proven value and the increasing complexity and urgency of construction projects in the AI infrastructure sector.

Buildots was founded in 2018 by three graduates of Israel's elite Talpiot military technology program: Roy Danon (CEO), Yakir Sudry (CTO), and Aviv Leibovici (CPO). The company now employs more than 400 people, including 260 in Israel, around 100 in the United States, and the remainder across several European countries. With this latest round, Buildots has raised $297 million in total funding since inception.

These details were first reported by Calcalist.