A New Construction Tech Proving Ground in Phoenix

Contributing Editor - Dean Simms

Many tech startups fail because they can’t get their products out of the lab and into the dirt. Now, Phoenix has a new proving ground for construction technology at the Diverge Innovation Center.

Diverge first launched in 2023 as the innovation platform and corporate venture capital arm of Hensel Phelps, a private construction company headquartered in Colorado with $8 billion in annual revenue and 5,000 employees. In addition to being a direct investor and fund LP, Diverge has a mission to shape the next generation of construction practices by sourcing, evaluating, and deploying solutions that improve productivity and safety. Diverge provides Hensel Phelps, with a structured approach to evaluate and implement new technologies while supporting industry collaboration. 

The Diverge Innovation Center in Phoenix allows invited startups to test their hardware or software in a simulated construction environment. Hensel Phelps staff can walk steps from their desks to connect with founders and engage in hands-on testing of frontier construction technologies. Thai Nguyen, Director of Innovation at Diverge, says, "Our Innovation Center is more than a showcase. It's a launchpad where clients, partners, and emerging technology companies come together to transform how we build." 

Once the startups prove their technology in the simulated environment, the Diverge team brings the startup's technology to a job site to test its performance in a real-world environment. For startups, it’s a rare opportunity to get user feedback and field validation from an industry leader.

In addition to being a sandbox for Hensel Phelps and startup partners, the space is set up to serve as an event center to host conferences that foster productive dialogue like The Future of Design and Construction summit hosted by the industry association Building Transformations, which featured over 20 startup exhibitors.

The Diverge Innovation Center demonstrates how dedication to innovation and community engagement can create mutually beneficial learning experiences and partnership opportunities for entrepreneurs and corporate operators. This is another asset in Arizona’s innovation ecosystem and a signal that Phoenix is a place that welcomes innovators and builders shaping the future of real estate and construction technologies.