Growthstock Pulse Editorial
As Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) advances the mandatory adoption of BIM/CIM—a methodology that integrates 3D digital models with project data including materials, costs, and schedules throughout the construction lifecycle—a startup leading the construction industry’s digital transformation is gaining significant attention. DataLabs develops and provides cloud-based systems that fundamentally streamline construction operations through automatic 3D modeling (BIM/CIM conversion) technology using point cloud data.
The company’s rebar inspection tool “Modely” has been recognized as the only NETIS-VE technology for rebar inspection systems in MLIT’s New Technology Information System (NETIS). NETIS-VE (New Technology Information System – Verified and Evaluated) is a certification system for technologies that have been evaluated as highly effective and no longer require continuous investigation within the database system established by Japan’s Ministry of Land, Infrastructure, Transport and Tourism to promote the utilization of new technologies. Modely has achieved approximately 80% reduction in work time and 40% cost reduction.
In 2025, marking the company’s fifth year since founding, CEO Daisuke Tajiri discussed the company’s journey and his vision for the construction industry’s digital twin strategy. Tajiri’s vision extends beyond simple operational efficiency to directly address Japan’s social challenges of aging infrastructure and labor shortages.
Remote Sensing Researcher to Entrepreneur
Tajiri’s career path may appear to span diverse fields—aerospace, drones, and construction—but in retrospect, he has consistently worked with remote sensing technology: measuring objects from a distance.
After joining JAXA (Japan Aerospace Exploration Agency) as a new graduate, Tajiri engaged in remote sensing (satellite data) utilization and promotion projects. He worked on popularizing satellite data applications for measuring atmospheric methane and CO₂ concentrations, as well as observing ground surface elevation changes. These technical fields were extremely advanced with high potential for future social applications.
However, JAXA is a large organization where research themes cannot be chosen with complete freedom, and it can take over 30 years for research results to reach practical implementation. With these considerations in mind, Tajiri transitioned to Terra Drone.
Three-dimensional measurement using drones is also broadly categorized as remote sensing technology. The expertise gained at JAXA would prove valuable in this new field. At Terra Drone, Tajiri witnessed firsthand how technology could directly benefit society.
Tajiri reflects,
Previously, it would take 2-3 people several months to measure areas, calculate soil volumes, and plan for moving that soil. Now, even small general contractors and surveying companies can fly drones themselves and complete the work in 1-2 days. Seeing this, I thought this was what it truly meant for technology to be put to practical use.
Witnessing people in the field speak of such dramatic changes as commonplace, Tajiri experienced the true value of technology.
This experience became the origin of DataLabs’ founding. Point cloud data, despite its wide range of information applications, had not been utilized due to its large data volume and difficulty in handling. Tajiri was fascinated by this potential. While point cloud data is difficult to handle because it’s unstructured, this very characteristic gives it versatility and the ability to integrate with various systems—a significant attraction.
During his time at Terra Drone, Tajiri was extremely busy with no time to consider entrepreneurship. However, at Synspective, where he later moved, he conceived the prototype business that would become DataLabs. In the years following DataLabs’ founding, the company operated in bootstrap mode, securing revenue through contract work while allocating funds to technology development and talent acquisition. This experience established a solid management foundation for future business operations.
Natural Focus on the Construction Industry
The specialization in the construction industry was more of a natural progression than a strategic choice. Having observed the main users at Terra Drone being from the construction and surveying industries, Tajiri witnessed the unique challenges specific to this field.
Tajiri explains,
From the 2020s, MLIT introduced guidelines and policies called ‘BIM/CIM mandatory adoption,’ making the use of three-dimensional data mandatory. However, I witnessed firsthand that the industry was struggling to advance the utilization of three-dimensional technology.
The root cause was clear. Point cloud data acquisition technology had already become commoditized, and collecting survey data by flying drones had become technically straightforward. The problem lay in integrating the collected data into actual business workflows.
Tajiri notes,
Acquiring point cloud data itself had become extremely simple and was already commoditized. Flying drones is easy, but the difficult part was making the acquired data usable in business operations—something everyone struggled with.
Traditional specialized software was expensive and required expert knowledge to operate. For small and medium enterprises, which comprise over 70% of the construction industry, these represented significant barriers to adoption. To address this challenge, DataLabs decided to take a unique approach.
Tajiri reflects,
I thought we could become a valuable presence if we could serve as a bridge.
The “bridge” role he refers to means connecting existing advanced 3D data processing technology with construction and surveying industry professionals who need it.
The concept was to convert complex, specialized technology into cloud services that anyone could use without expert knowledge, and to make work that previously required expensive specialized software easily operable through web browsers. The idea was to provide 3D data utilization—technically possible but stalled before practical implementation—in a form that field workers could use routinely in their daily operations. This thinking gave birth to DataLabs’ business concept.
Regarding the company name chosen at founding in July 2020, Tajiri explains:
The reason our company name is ‘DataLabs’ is because we place emphasis on data utilization rather than being tied to specific hardware. We believe that with data, we can create businesses that solve social issues through technology.
From Trust Building in Japan to Global Expansion
Image credit: DataLabs
What proved decisive for DataLabs’ growth was establishing technical credibility through long-term demonstration experiments with MLIT. The catalyst was adoption into a project aimed at streamlining rebar inspection operations through the ministry’s open innovation initiative.
Given that much of infrastructure construction consists of public works, national certification was unavoidable.
Tajiri explains,
Without government endorsement, even if we explained our products to general contractors, they would ask, ‘Who said it was okay to use this?’ or ‘Did you get permission to use it?’ Since much of infrastructure construction is public works, considering this characteristic, receiving certification from the government was 100% unavoidable. This process was absolutely necessary.
DataLabs acquired 109 samples and conducted repeated verification under various solar conditions and different target structures. Economic benefits and productivity improvement effects needed rigorous evaluation involving external organizations and university experts.
Technical accuracy was also rigorously verified, achieving high precision of within 0.3φ relative error for rebar spacing and within 0.6φ relative error for concrete cover (φ being the rebar diameter). This meets the precision requirements of MLIT’s “Implementation Guidelines (Draft) for Rebar Construction Measurement Using Digital Data.”
Through these dedicated efforts, the company achieved approximately 80% productivity improvement compared to conventional methods, finally enabling system release. This technical superiority culminated in the NETIS-VE technology certification in January 2025.
Among evaluation items, all categories except “Environment” were judged as “Superior to conventional technology,” with 73% of evaluators responding they “want to continue using it” and 27% saying they “will consider using it,” showing 100% intention for continued use.
With NETIS-VE certification, future use of Modely will no longer require submission of implementation reports or utilization effect survey forms, significantly reducing procedural burden. This represents an important benefit for adopting companies and enables faster technology dissemination.
Currently, Modely is implemented in over 250 companies and received the Startup Encouragement Award at the fiscal year 2023 Infrastructure DX Grand Prize, establishing its industry reputation. The complete workflow—from acquiring point cloud data with general-purpose devices like iPads, automatically generating 3D models, and automatically measuring rebar inspection items—has proven its practical utility in the field.
Interestingly, overseas markets show more advanced adoption of 3D technology. Tajiri explains this phenomenon by comparing it to high mobile phone penetration rates in Africa.
Tajiri observes,
Overseas markets are more advanced in 3D utilization. This might be similar to the very high smartphone ownership rates among people in Africa—a leapfrog phenomenon.
In Japan’s construction industry, there were originally drafting personnel who gradually transitioned to CAD, then 2D CAD became widespread, and now we’re moving to 3D CAD—going through these stages.
In ASEAN countries like Thailand, Singapore, and Malaysia, they might not have been doing hand-drawn drafting in the first place. 3D CAD was introduced directly, and they found it ‘easy to understand and use.’
Since ASEAN countries don’t have the 2D-based rules and customs that Japan has, they intuitively understand that 3D is better, and rules are created based on that understanding. Therefore, the operational foundation for advancing construction in 3D is established.
This difference in technology adoption highlights the high barriers to implementation in Japan. Japan has institutional challenges that cannot be solved by technology alone, such as building codes and administrative agencies’ adherence to conventional methods. Meanwhile, overseas markets have more receptive environments for new technology, with proactive inquiries from government agencies.
Image credit: DataLabs
DataLabs has now begun full-scale entry into ASEAN markets through business partnerships with Singapore’s RATEC Asia and Thailand’s DTX. The company has received direct office visits from Singapore government agencies, with expectations for solving construction challenges including rebar inspection.
Construction site characteristics also differ by country. In Singapore, component-based construction methods are mainstream, with many projects involving factory-manufactured parts assembled on-site. In contrast, Thailand and Malaysia practice on-site construction similar to Japan, providing broader application scope for Modely.
The demand background in overseas markets differs significantly from Japan. In Thailand, local general contractors often employ migrant workers from Nepal and Myanmar, creating language barriers that prevent proper communication. When verbal confirmation of proper rebar placement is attempted, field inspections often reveal nothing was actually installed.
For this problem, while photographs can be locally manipulated, 3D data provides absolute proof of physical existence, making concealment impossible and functioning as reliable quality control data. Therefore, it’s highly anticipated as a dependable quality management tool.
However, overseas expansion presents challenges. While Singapore has higher prices than Japan allowing for increased rates, Thailand and Malaysia require lower rates than Japan. Furthermore, while Modely supports English, there are requests for local language support such as Thai, requiring careful strategic expansion.
Tajiri currently travels to the region several times monthly to respond to inquiries within Asia. While he repeats day trips considering cost efficiency, establishing local bases requires substantial investment, so he prioritizes confirming definite needs with his own eyes first.
Realizing Digital Twins and Addressing Social Challenges
Image credit: DataLabs
Tajiri’s ultimate goal is realizing comprehensive digital twins in the construction industry. He positions current rebar inspection as “the beginning of the infrastructure lifecycle” and envisions a grand vision beyond.
Tajiri explains,
Rebar inspection is still just the beginning of the infrastructure lifecycle. After rebar installation, concrete is poured to construct buildings, where general contractors become the users.
Since general contractors’ role is project management, they need to confirm whether workers have properly poured concrete to the correct length to form columns—checking floor after floor for buildings and condominiums. They take photos and keep records, but we believe such tasks can be eliminated using 3D data
After rebar inspection comes concrete pouring, construction of each floor, and building completion. DataLabs envisions automating the series of confirmation and recording tasks performed by general contractor project managers.
By accumulating 3D data throughout the entire construction process, a complete digital twin of the building would be ready upon project completion. This data becomes a valuable asset for building owners, usable for maintenance over 10-20 years. For condominiums, it would enable determining whether appropriate repairs are possible within reserve fund limits during major renovation planning using the 3D database.
Furthermore, DataLabs is expanding applications to existing infrastructure maintenance. As road and bridge deterioration becomes severe, the company proposes accumulating information as 3D data rather than conventional paper or photo inspection records.
Tajiri envisions,
We want to preserve inspection information as 3D data and compare it with previous data during the next inspection to identify deteriorated areas. Like a long-established restaurant’s secret sauce recipe, we want to create a system where new information is layered onto previous information, creating more valuable insights that can be passed down through generations. The more past data is accumulated, the more accurate predictions and decisions become possible.
Behind this vision lie Japan’s serious social challenges. Using his hometown Miyazaki as an example, Tajiri expresses concern about the current state of infrastructure recovery.
Tajiri observes,
In my hometown of Miyazaki, I see roads damaged by earthquakes and typhoons left unrepaired for extended periods. Projects that would have been quickly restored 10-20 years ago now remain unrepaired. The root cause of this problem is not lack of technology or budget, but shortage of personnel to perform the work.
MLIT shares similar concerns, introducing new concepts like “Infrastructure Management DX” and “Group Management”—systems where multiple municipalities, construction companies, and consulting firms collaborate to jointly manage regional infrastructure. Realizing this requires a unified 3D data foundation.
DataLabs is currently developing foundational technology for digital twin construction in collaboration with MLIT. While this presents extremely advanced technical challenges, the company takes a strategy of ensuring monetization opportunities while pursuing the ultimate vision by simultaneously developing specific applications.
In technology development, an underground utility management project is also underway. Tokyo’s nighttime construction faces enormous time and costs for exploratory digging due to unknown locations of gas pipes, water mains, and power lines.
Tajiri explains,
Tokyo’s nighttime construction involves enormous time and costs for exploratory digging because locations of gas pipes, water mains, and power lines are unknown. We believe our 3D measurement technology can significantly contribute to future construction efficiency by accurately identifying these pipe locations and creating databases.
This project considers a business model starting with monetizing general contractors’ safety management cost reduction, then selling accumulated data to infrastructure companies. Ultimately, through policy support at Tokyo metropolitan or national levels, he aims to function as social infrastructure that improves regional residents’ convenience.
Building Foundations for Growth
Photo credit: DataLabs
More important than technology development is organization building. DataLabs currently has approximately 20 members, including multiple foreign engineers. This diversity is not coincidental but based on intentional strategy.
Tajiri explains,
Our CTO promotes English communication, and we seek excellent talent globally without limiting recruitment to Japanese candidates. Compared to targeting only Japanese engineers, this significantly expands our recruitment pool and clearly improves technical skill levels.
For engineering recruitment, referral hiring is central, with the organization expanding through existing members introducing excellent colleagues. This enables recruitment that emphasizes not only technical skills but also cultural fit.
However, the bottleneck for business expansion is talent on the business side. Tajiri speaks candidly about current challenges:
What we aim for goes beyond simple sales activities to participation in ‘rule-making.’ With expanding collaborations with JR East, NEXCO Central Japan, MLIT, and anticipated cooperation with real estate developers in construction, securing personnel capable of complex coordination on a project basis is urgent. Multi-directional business expansion including overseas markets has made physical resource shortages evident.
For team composition, developing new foundational technology requires teams of at least three members (development leader, backend, frontend), and expanding such development structures is under consideration. Additionally, increasing business members capable of handling travel to respond to numerous inquiries is also a challenge.
Interestingly, DataLabs’ team includes multiple PhD holders from France. Members with advanced expertise in economics and data science fields are working on technological innovation in the seemingly different construction industry. This diversity serves as a source of innovation that would be difficult to generate within the traditional construction industry.
For fundraising, the company raised 430 million yen in a pre-Series A round in April 2023, beginning capital and business partnerships with JR East Startup. This funding enabled accelerated technology development and expanded talent acquisition. They are currently preparing for a Series A round.
In advancing fundraising, Tajiri particularly emphasizes building capital relationships that can create synergies with major corporations. The partnership with JR East Startup has already achieved results in automating and streamlining rebar inspection in railway construction. Strategic partnerships with other industry leaders are also being considered.
Vision for the Future
In the world Tajiri envisions 5-10 years from now, 3D data acquired at construction sites will be utilized throughout building lifecycles, functioning as true digital twins.
Tajiri states,
Starting with rebar data from new construction, through construction records at each stage, to post-completion maintenance information—I want to realize a world where everything is managed as an integrated database. I believe this can fundamentally solve Japan’s infrastructure challenges.
Realizing this requires not only technology development but industry-wide consciousness reform. The transition from conventional 2D drawing-based workflows to 3D data utilization involves organizational transformation beyond simple system implementation. DataLabs serves not only as a technology provider but also conducts industry education through field demonstrations.
In international expansion, there’s high potential for demonstrating competitive advantages as high-precision technology from Japan. Particularly in emerging markets struggling with quality control challenges, DataLabs’ technology could significantly contribute to construction industry modernization.
Moreover, the experience in addressing robustness and precision requirements cultivated in disaster-prone Japan becomes a differentiating factor in global markets. In constructing structures that withstand natural disasters like earthquakes and typhoons, accurate rebar inspection forms the foundation of safety assurance.
DataLabs’ technology also serves as foundational technology for digitizing social infrastructure beyond just the construction industry. In realizing smart city concepts and Society 5.0 (a human-centered society that highly integrates cyberspace and physical space), digital twinning of physical infrastructure becomes an essential element. The company’s initiatives represent an important piece toward realizing such future society.
Currently, the company actively seeks technology development partners, manufacturing partners, and sales partners. Tajiri expresses expectations for collaboration:
We particularly value cooperation in overseas market channel expansion, mass production technology establishment, and application development fields. For companies aiming for first-mover advantages in the massive next-generation construction infrastructure market, we’re confident that collaboration with us offers high strategic value.
DataLabs’ challenge to global markets with Japan-originated technology will significantly influence the construction industry’s future. Attention focuses on the company’s future developments toward realizing the digital twin society that Tajiri envisions.
