Insights – QEATECH

Better Building Envelopes Strengthen Insurance Risk Profiles

Hannah Elhamahmy on September 4, 2026

As insurers respond to rising climate-related losses and gain access to more sophisticated asset-level data, the physical condition and resilience of individual buildings are becoming increasingly important to underwriting. For property managers, this creates another reason to understand, document and improve building envelope performance. A resilient, well-maintained building envelope can contribute to a stronger insurance risk profile and, in the right circumstances, better insurance outcomes.

Importantly, resilience measures do not automatically translate into lower premiums. Insurance pricing depends on many factors. But demonstrating that a property is proactively reducing its exposure to climate-related losses can impact insurers willingness to quote, deductible amounts, and coverage terms.

Climate Resilience Is Becoming an Insurance Issue

The connection between building performance and insurance is becoming more significant as climate-related losses increase. Flooding, wildfire, extreme heat, hail, wind and severe storms are increasingly incorporated into property risk assessments. In markets exposed to severe climate scenarios, property managers may encounter higher deductibles, reduced insurance capacity, or more restrictive coverage and the response cannot simply be to shop for another insurer.

Insurance Is Becoming More Building-Specific

Commercial property underwriting relies on the COPE (Construction, Occupancy, Protection and Exposure) framework which details physical building attributes that improve insurability:

Construction: Considers characteristics such as the quality and fire-resistiveness of building materials.

Occupancy: Accounts for how the property is used and the hazards associated with those operations. For example, an office tower has a lower occupancy hazard than an industrial waste disposal plant.

Protection: Includes measures such as sprinkler systems, alarm systems for wear and tear on equipment, and building maintenance programs.

Exposure: Considers external risks, including neighbouring properties, proximity to water, climate conditions and whether a property is located in an urban, rural or remote environment.

Those fundamentals remain important. What is changing is the level of detail available to insurers.

Underwriters increasingly have access to catastrophe modelling, GIS-based property information, climate models and AI-generated actuarial data. Instead of relying as heavily on historical portfolio averages, insurers can evaluate risks at the individual asset level.

A building’s precise location, building envelope characteristics, exposure to severe weather, flood susceptibility and other physical attributes can increasingly contribute to its risk profile. For property managers, this means two otherwise similar buildings may produce very different insurance outcomes based on how well each has identified and mitigated its vulnerabilities. Property managers need to demonstrate how their buildings have been adapted to the risks associated with its location. Depending on the property, this could include hail or wind-resistant roofing, non-combustible materials and upgrades to vulnerable building envelope assemblies.

This represents an important shift in capital planning. The question when considering building maintenance becomes not simply, “How much will this upgrade save?” but “What risks will this investment remove from the asset?”.

The Building Envelope Is at the Front Line of Loss Prevention

The building envelope acts as the barrier separating the conditioned interior from the exterior environment, and is therefore directly exposed to many of the climate hazards becoming more important to insurers.

Climate hazards such as flooding and severe storms can worsen building envelope weaknesses that may initially be difficult to see. A roof defect can allow water to seep into the building, damaging equipment, disrupting tenant operations, and creating environments for mold growth. Small cracks on the wall can lead to moisture intrusion and potentially parts of the building façade falling. Deferred building envelope maintenance can cause relatively minor deficiencies to develop into substantially larger problems, making building envelope performance important to insurance and risk management.

From Reactive Repairs to Documented Risk Reduction

Insurers will reward evidence of effective risk management more than statements of intent. A property manager saying that a building is “well maintained” provides limited underwriting information. A manager who can demonstrate when the building envelope was assessed, what deficiencies were identified, which repairs were completed and how conditions are being monitored provides tangible evidence of effective risk management practices.

This is where proactive building envelope assessments can play an important role. For example, QEA’s building envelope intelligence platform efficiently scales across large building portfolios, pinpointing the exact location of a wide variety of building envelope risks and helping property owners identify deficiencies before they develop into costly problems. QEA also ranks these issues by severity and provides actionable retrofit recommendations to address specific building envelope needs.

By identifying areas that warrant further investigation or corrective action, assessments such as QEA’s establish a clearer picture of asset condition and support informed maintenance and capital planning. Repeating assessments over time can also provide evidence that identified risks are being actively managed rather than deferred. This documentation can become part of a broader risk-management package presented to brokers, insurers, lenders and investors.

Climate Related Policies Are Raising Expectations for Better Data

The regulatory environment is reinforcing this movement toward better climate-risk information. For example, Canada’s climate-risk and sustainability reporting landscape is increasing expectations for organizations to understand and document climate risks. For insurers, OSFI’s Guideline B-15 establishes expectations around the governance and management of climate-related financial risks. The guideline requires federally regulated financial institutions to report on Scope 1-3 GHG emissions and achieve:

Financial Resilience: Institutions must remain financially and operationally resilient through severe climate risk scenarios.

Governance and Accountability: Institutions require a governance structure that holds senior management accountable for climate risk management.

Risk Management Integration: Institutions are required to incorporate climate-related risks into their business models and strategies.

If insurers do not comply with these guidelines, they face costs such as being barred from accessing industry level insurance data, restrictions placed on the type and size of business they can write, and financial penalties.

For insurers with large building portfolios, proving climate risk management is a significant task. As a result, many insurers are offloading the task to property managers, requiring them to compile the data needed to meet guidelines.
Property managers who already maintain credible records of building envelope conditions, resilience improvements, preventative maintenance and capital investments will be better positioned to accommodate increasingly stringent climate regulations.

A Practical Risk-Reduction Strategy for Property Managers

Climate risk resilience is no longer optional for property managers to consider, it determines whether assets are insurable, financeable, and competitive.

The strongest approach to risk reduction brings insurance, maintenance and capital planning together rather than treating them as separate exercises.

Property managers can start by understanding their property’s COPE characteristics and location-specific climate exposures. From there, they can assess the condition of critical systems—including the building envelope—and identify vulnerabilities before significant losses occur. Managers should also maintain records of assessments, completed repairs and upgrades.

The result is a stronger narrative supported by evidence: we understand this building’s risks, we know where its vulnerabilities are, and we are actively reducing them.

Turn envelope data into actionable retrofit plans that cut costs, reduce carbon, and improve efficiency at scale.

How AI-Driven Retrofits Can Future-Proof Commercial Real Estate

qeatechmarkstg on February 13, 2026

The commercial real estate (CRE) sector is standing at a critical crossroads. As global regulations tighten and building performance standards change, the industry faces a dual threat: the rapid obsolescence of aging assets and the growing risk of “stranded assets” – properties that can no longer earn their expected economic return due to changes in the environment in which they operate.

However, where many see risk, there is a valuable opportunity for forward-thinking property owners. By leveraging innovative technologies to assess buildings and plan retrofits, stakeholders can protect their investments and turn potential liabilities into high-performing, sustainable assets.

The Scale of the Challenge

Current research indicates a staggering reality: retrofitting rates must increase more than fivefold – from 2.4% today – for the CRE industry to meet net-zero targets by 2050. In major global hubs like New York, the urgency is even higher due to aging building stocks and lower baseline energy efficiency.

The pressure to retrofit is mounting from three distinct directions:

Strict Regulation

With the rise of Building Performance Standards, non-compliant buildings are facing immediate financial penalties. Policies like New York City’s Local Law 97 (LL97) are setting hard emissions limits that most existing buildings do not meet. Buildings that fail to meet these emissions caps don’t just lose their “Green Premium”—they actively accumulate “Brown Discounts” through fines and diminished tenant interest. If applied today, only 25% of Class A office stock in the U.S. would comply with LL97’s 2030 limits.

Volatile Energy Costs

Electricity prices have surged—up by 71% in the EU and 30% in the US over the last four years—making energy-inefficient buildings increasingly expensive to operate.

Physical Risk

53% of CRE investment in the last 10 years occurred in markets facing acute risks from climate. With climate-related insurance costs skyrocketing by 88% in the last five years, ensuring assets are resilient against physical risks directly protects the bottom line.

Turning the Tide: From Stranded to Sustainable

Upwards of US$1.2 trillion in capital expenditure (CAPEX) is needed globally to bring office assets at the end of their life cycles up to modern standards. While this may seem overwhelming, leveraging innovative technologies such as AI allows for the planning of specific, targeted retrofits that minimize cost and optimize ROI.

The building envelope—the roof, walls, windows, and foundation—is often the primary source of energy loss and a major contributor to a building’s carbon footprint. According to the International Energy Agency, high-performing envelopes are the most effective way to reduce the thermal needs of buildings, making them an ideal starting point when planning building repairs.

Leveraging solutions such as QEA’s AI-driven building envelope assessments can help to provide the data-driven foundation needed for this massive reinvestment by identifying the locations and asset classes at the highest risk. Instead of guessing where to allocate CAPEX, owners can know exactly which sections of the building envelope require the most urgent attention, ensuring every dollar is spent effectively.

Deep retrofitting buildings to reduce energy use by 40–65% offers a dual advantage: immediate financial savings and long-term asset protection. For institutional owners, this translates to an average savings of US$31 per square meter, potentially unlocking US$2.7 billion in annual operating expense reductions across the world’s highest-risk office markets.

As governments intensify emissions mandates and energy prices increase, proactive retrofitting has moved from “nice-to-have” to a financial necessity. By meeting the growing demand from eco-conscious tenants and investors, owners can secure higher ROI and effectively “future-proof” their properties against the rising risk of asset stranding and obsolescence.

Adapting Real Estate for a Resilient Future

The global real estate landscape is undergoing a structural shift. Property owners must navigate a complex web of regulatory pressure, shifting demand, and the looming threat of asset stranding or obsolescence. Buildings that adapt to changing sustainability and efficiency requirements will thrive. Leveraging advanced technologies that can provide high-quality, detailed insights on building performance will make avoiding obsolescence or stranding a simpler, more achievable process.

How NYC Buildings Can Win on Sustainability, Compliance, and Performance

qeatechmarkstg on February 2, 2026

New York City’s skyline is defined by its buildings, many of which are decades old and facing growing challenges from aging infrastructure and climate change. To protect both public safety and environmental health, New York City (New York) has enacted a suite of local laws requiring building owners to improve durability and efficiency. While these laws can be complex to keep up with and come with harsh penalties for non-compliance, expert solution providers, like QEA, can make the roadmap to sustainability and compliance seamless and achievable for building owners.

New York City Local Laws Driving Energy Efficiency and Building Sustainability

Buildings are the single largest source of greenhouse gas emissions in New York – nearly 73% of the city’s emissions come from the energy used to heat, cool, and power buildings. Most large buildings in New York are decades old (on average 60-70 years) and were not built with modern energy standards in mind. To meet New York’s climate goals, a 40% reduction in GHG emissions by 2030 and 80% by 2050, relative to 2005 levels, the city enacted a series of local laws targeting energy efficiency and carbon reduction in existing buildings. Key among them are:

Local Law 85 (Energy Conservation Code Compliance)

Local Law 85 ensures that whenever you renovate or alter a building, you must comply with the latest Energy Conservation Code. Now any renovation or alteration requires the project to meet current energy code requirements for insulation, lighting, mechanical systems, etc. For building owners, this might mean higher upfront costs for higher performing windows during a renovation, but significant cost savings in the long run through a more energy efficient building.

Local Law 87 (Energy Audits and Retro-Commissioning)

Local Law 87 (LL87) requires that large buildings undergo a professional energy audit and retro-commissioning every 10 years. An energy audit (typically ASHRAE Level II) is a systematic analysis of a building’s energy use and systems to identify cost-effective efficiency improvements. The goal is to give owners actionable insights into how to save energy and money across their portfolio, beyond the raw data of benchmarking. Many buildings have found low-hanging fruit (like sealing leaks) that quickly pay back the audit costs in saved utility bills. Compliance with LL87 often uncovers operational improvements that enhance a building’s performance and value.

Local Law 97 (Building Emissions Limits)

Enacted in 2019 as part of the Climate Mobilization Act, Local Law 97 (LL97) sets annual greenhouse gas emissions caps for buildings over 25,000 square feet. The law covers roughly 50,000 buildings across commercial and residential sectors. Compliance increases over time, and by 2030 the caps will cover 75% of buildings across the city, forcing deep retrofits and more energy efficient maintenance choices for large buildings. The goal is net zero emissions by 2050, meaning nearly all fossil fuels used in buildings must be eliminated or offset.

LL97 is considered one of the most ambitious building climate laws. Many buildings will need deep retrofits, especially by the 2030–2034 phase when carbon emissions limits tighten sharply. The city estimates that as of 2023, about 8% of buildings are over the 2024 limits, but 57% would be over the 2030 limits without improvements.

For a property owner, compliance can seem costly, but the cost of inaction is far greater. A building that doesn’t take measures to better understand and improve energy performance is likely spending more on fuel and electricity than necessary. Additionally, large corporate tenants often have their own carbon reduction targets and may shy away from buildings that will blow their carbon budget. A compliant building can market its resiliency and efficiency as selling points: cheaper to heat and cool, better for occupants, less likely to spring leaks or outages, and avoiding penalties for non-compliance.

How QEA’s Building Envelope Assessment and Retrofit Planning Services Enable Compliance

Achieving compliance can be complex, but innovative technology is proving incredibly valuable. QEA is at the forefront of this movement, providing detailed, precise building envelope audits using patented AI software, drones, and thermography. These assessments provide building owners with the exact insights needed to meet compliance obligations more effectively and identify the most impactful building upgrades.

The building envelope, the outer structure of the building, is often overlooked in traditional energy audits, yet it’s critical for both building sustainability and efficiency. Improving building envelopes is considered the most effective way to reduce the thermal needs of buildings, with envelope retrofits enabling upwards of 30% in energy savings.

QEA ’s solution deploys industrial drones equipped with high-resolution (8K+) thermal and visual cameras to scan entire buildings, collecting thousands of high-resolution, close-proximity images across the building envelope. This data is then processed and analyzed by QEA’s proprietary AI models that are built off of the largest database on the thermal performance of building envelopes. This approach yields a detailed thermal map of a building’s surface, pinpointing with sub-inch accuracy a number of issues such as missing insulation, leaky window frames, and moisture penetration. QEA’s audit can help spot not just visible degradation but also areas of potential façade failure like hidden moisture, delamination, or hazardous ice buildup.

QEA’s audits go beyond qualitative analysis, incorporating proprietary methods to quantify energy loss and forecasted savings for each square inch of the building envelope – accurately measuring megawatt-hours of energy loss, tons of carbon emissions, forecasted energy and emissions savings, and actual effective R-values. QEA’s methodology ensures real energy measurements, rather than assumptions based on theoretical models.

QEA has previously helped cities gather the data needed to meet pressing climate goals and tailor energy policy planning. For example, QEA’s audit of 190 buildings for a large city found that on average building envelopes were performing 75% worse than current building code standards, and that upgrading them could avoid 56% of the heat loss (and corresponding GHG emissions) those buildings were experiencing.

Importantly, QEA’s solution prioritizes actionable recommendations by calculating how much energy is being lost at each defect, how much can subsequently be saved through targeted retrofits, and the ROI of completing each retrofit. QEA’s retrofit solution partners can help buildings implement the recommended retrofits, simplifying the upgrade process and making it easier to meet regulations. From large hospitable campuses, apartment buildings, airports, library branches, and more, QEA has the experience to help owners of all building types cost-effectively meet regulation requirements.

Enabling Better Buildings Across New York

By understanding the local laws and embracing the solutions at hand, building owners and stakeholders can not only meet mandates but derive value from them, through safer buildings, lower operating costs, and more sustainable communities. The experience of firms like QEA in New York shows that with data, innovation, and commitment, even the oldest skyscrapers can shine green.

How AI Is Driving a New Era of Efficient Building Envelope Retrofits

qeatechmarkstg on December 12, 2025

Buildings are a leading source of energy consumption across the globe, accounting for a third of global energy consumption and a quarter of CO₂ emissions. Improving the building envelope – the outer layer of a structure that includes walls, windows, roofs, and doors – is particularly important to achieving energy and emissions savings for buildings. Capable of achieving upwards of 30% of energy savings, high-performing building envelopes are the most effective way to reduce the thermal needs of buildings according to the International Energy Agency.

Barriers to Building Envelope Energy Efficiency – Lack of Actionable Data and Scale

Retrofits to the building envelope are a critical means to achieving major energy savings without having to demolish and rebuild the existing structure. Despite their importance, building envelope retrofits are frequently delayed, largely due to a lack of data on the issues and risks affecting the building envelope and the return on investment of retrofits. Traditional methods of analyzing the energy consumption of building envelopes rely on manual, imprecise, intrusive, and non-scalable methods that fail to yield a prescriptive business case for retrofits.

Scalability, Efficiency, and Detail: Transforming Building Envelope Analysis with AI

AI, paired with other technologies such as drones, can be used to simplify, optimize, and accelerate the retrofit planning process for the building envelope. Drones equipped with thermal and visual cameras are capable of collecting thousands of high-resolution, close-proximity images across the entire building envelope in a short amount of time. This enables the creation of comprehensive datasets built off of millions of data points that encompass various building envelope materials (e.g., brick, concrete, glass, wood), structures (e.g., high-rises, low-rise residential, industrial warehouses), and façade shapes (e.g., rectangular, curved, irregular). Datasets can be further enriched through data processing and augmentations that simulate additional variations.

This data can then be fed into AI models that are trained to identify varying instances of energy loss and physical deficiencies across the building envelope (e.g., air leakage, moisture penetration, decaying insulation). Detecting each of these issues may involve using different thermal tunings and color palettes to more easily highlight specific anomalies.

Once building envelope issues are identified, AI can be used to create action-oriented retrofit plans through large language-based recommendation modules. Rules-based algorithms, built off of detailed datasets on possible building envelope retrofits, can be used to recommend fitting retrofits based on specific building envelope issues identified. Machine learning models, factoring in quantitative details on the building envelope such as square footage, can then take the list of recommended retrofits and estimate project costs, forecasted energy and cost savings, and return on investment. These outputs can then be fed into a large language model to deliver actionable retrofit plans.

Overall, leveraging AI models can notably speed up and improve the building envelope analysis and retrofit planning process, allowing for the precise analysis of extremely large datasets within a fraction of the time it would take for a human to analyze data.

Real Life Use Cases: Optimizing Retrofit Planning with AI Tools

A large warehouse located in the UK, spanning over 1 million square feet, needed an efficient and scalable way to pinpoint key areas of energy loss across the facility’s expansive building envelope. Leveraging sophisticated AI models, the warehouse was able to quickly process and analyze over 10,000 high-resolution visual and thermal images of the building envelope, pinpointing over 1,300 issues related to building envelope energy loss and physical deficiencies. The analysis pinpointed air leakage from skylights and garage doors as being key sources of energy loss, and a business case for specific and tailored retrofits with clear payback and ROI was established.

Similarly, a large commercial office building based in Canada, spanning over 60,000 square feet, leveraged AI tools to prioritize which retrofits to complete for its building envelope. By using AI, the building was able to efficiently and accurately identify 131 building envelope issues that required action. An ineffective thermal layer on the roof was identified as a significant source of energy loss that could be cost-effectively resolved by adding insulation. In a post-retrofit AI analysis, it was determined the building saved 78% of annual energy loss from the roof and over $20,000 in annual energy costs.

*Thermal images of the commercial office building roof before and after the retrofit was completed. The darker hues in the post-retrofit image display the reduced energy loss on the roof.*

Using AI to Forge a Path Towards a Greener Built Environment

AI is revolutionizing the way we optimize building envelope performance, turning a once costly and invasive process into a scalable science. This technology shifts the paradigm from manual, time-consuming inspections to rapid, data-driven insights. As a result, it streamlines the transition from problem identification to retrofit implementation, rendering deep energy savings far more achievable. As the industry adopts these advanced tools, we move closer to a built environment that is cleaner, smarter, and more sustainable.

The Value of Roof Audits: Data-Driven Insights to Maximize ROI

qeatechmarkstg on September 23, 2025

The roof is one of the most critical components of a building; acting as an essential protective barrier and determinant of energy efficiency. As such, roof resiliency must be a core maintenance and risk management priority for all building types.

The Case for Resilient Roofs

From cracked surfaces and insulation decay to moisture penetration and metal corrosion, roofs can accumulate a variety of damaging issues over time. Left unchecked, these issues can lead to costly emergency repairs, steep insurance premiums, and shorter roof lifespans.

Regulation related to roofing upgrades underscores the need to improve the resiliency of roofs. For example, Florida Building Code 25%, sets strict rules that require roofs that have sustained damage to 25% or more of the roof to be repaired or replaced in its entirety.

Enabling Resiliency Through Regular Roofing Audits

Recurring roof audits help building owners avoid costly retrofit expenses by identifying problems in the roof early on, allowing for targeted retrofits that are a fraction of the cost of a full roof replacement. Roof audits evaluate important issues like:

Moisture penetration – Occurs when water seeps through cracks, seams, or damaged roofing materials, often due to aging, poor drainage, or ponding water. This can lead to insulation saturation, structural damage, and mold growth.

Surface cracks – Due to structural or environmental factors that cause roofing materials to fracture, potentially leading to water penetration, air leakage, and compromising of the thermal and structural integrity of the building.

Delamination – Characterized by the separation of layers in materials, often resulting from moisture infiltration, temperature fluctuations, or poor adhesion during installation. As layers begin to detach, the roof becomes more susceptible to air and water leaks, energy loss, and damage to underlying materials.

Air leakage – Due to uncontrolled air infiltrating or escaping through openings in the roof, reducing energy efficiency, increasing costs, and negatively affecting indoor comfort.

Inconsistent or decaying insulation – Characterized by poorly installed or compromised insulation, that allows heat to escape in winter and enter during summer. This leads to increased costs and contributes to drafts, cold spots, and moisture issues.

*Digital twin of a roof from an audit completed by QEA Tech. The digital twin has a thermal overlay with polygons identifying key roofing issues. Issues are categorized by severity and square footage.*

Leveraging detailed insights from roof audits, building owners can proactively manage roof health, enabling them to:

Build Resiliency and Manage Costs – A detailed roof audit enables targeted repairs that address roof issues and risks while maximizing ROI. Further, regular assessments can determine the progression of roofing issues, providing insights on if they are worsening over time and the risks this can pose.

Optimize the Lifespan of the Roof – Regular audits enable building owners to evaluate the state of roofing materials, equipping them with the tools to make informed maintenance decisions and avoid costly emergency repairs or replacements.

Boost Energy Efficiency – By determining areas and causes of energy loss, building owners can implement high-impact, cost-effective retrofits such as adding:

1. Energy efficient insulation in areas with gaps or decaying insulation

2. Sealants or flashing tape to address air leakage from skylights

3. Sealants to protect against potential water leaks and moisture penetration

4. Waterproof roofing membranes such as bitumen to protect against weather elements

5. Reflective roof coatings to help deflect solar heat and reduce cooling loads

QEA Tech’s detailed, data-driven roofing audits help building owners create robust business cases to realize these benefits. This can be seen through an audit QEA Tech completed for a large warehouse. QEA Tech provided the client with important quantified insights, such as the roof being responsible for over $347,000 USD in annual energy loss and performing at only 50% of building code standards. QEA Tech then delivered high-impact retrofit recommendations, such as using silicone sealants to address air leakage from skylights (3-month payback period). The client is now working with one of our partnered roofing solutions providers to implement cost-effective retrofits.

QEA Tech has provided several other clients with the data they needed to improve their roof. For example, leveraging insights from our audit, a large commercial building replaced its gravel roof with the more energy efficient choice of rigid insulation. In a post-retrofit verification audit QEA Tech completed, it was found that 78% of annual energy loss in megawatt-hours from the roof was saved and previous roofing issues such as an inconsistent thermal layer were no longer present.

How QEA Tech is Scaling Up Roof Resiliency

QEA Tech has a strong record of aiding building owners identify the most cost-effective ways to address roofing issues.
We have pioneered proprietary AI software that pinpoints and evaluates the severity of various roofing issues. Additionally, QEA Tech’s software accurately measures megawatt-hours of energy loss, tons of carbon dioxide equivalent, and the actual effective R value for each square inch of the roof. As a result, we are able to recommend customized retrofits, detailing implementation costs, forecasted energy savings, and ROI. By incorporating patented quantification methods, a comprehensive dataset on the thermal performance of roofs, and exact architectural and energy data for the building, QEA Tech is able to provide unmatched accuracy and precision.

Contact QEA Tech today to gain detailed insights on your roof, taking the first step needed to build resiliency and efficiency across your building portfolio.

Data Centers’ Energy Appetite: The Need for Efficient Building Envelopes

qeatechmarkstg on August 13, 2025

Synopsis: Data centers consume enormous amounts of energy – half of which is spent to cool the hardware that powers our digital world. As data centers proliferate across the globe, the power demand that these facilities require strain the grid and power resources. With such a high demand for power, the energy efficiency of these buildings is essential. The building envelope, the barrier between the cooled interior and building’s exterior, must be thermally secure to optimize energy consumption and reduce waste.

Data Centers: The Powerhouse of the Digital World

Behind all cloud computing software and artificial intelligence (AI) platforms is a data center: large warehouses powering the technologies behind online activity. By 2030, the power needs of data facilities are expected to triple from 3-4% of total US power demand to between 11-12%.

As the use of AI, digitization, and data increasingly integrates with all aspects of our daily lives, the gigawatt demands to power these systems by the end of the decade will require considerably more electricity than what is currently produced.

Every watt consumed by processors emerges as heat. To keep the technologies at an operational temperature, cooling systems require up to half of total energy use. Looking forward, energy efficiency will be critical to sustainably managing the rapidly growing energy demand.

The Case for Urgent Energy Efficiency Improvements

Skyrocketing energy demands, specifically from the expansion of AI, are causing strain on utilities in places with major data center campuses. In northern Virginia, an established global hub of data centers, the electricity grid is facing serious reliability concerns as power demand surges past the region’s capacity to generate it.

In Wyoming, a new data center will use more power than every home within the state and require its own dedicated energy generation sources to not exceed the state’s energy capacity. Without efficiency improvements, new projects like Wyoming’s risk placing severe stress on regions’ grids causing increased energy costs for all and instances of unreliability or energy shortages.

Cooling Efficiency Isn’t Optional

Given the voracious appetite for energy, developers are turning to sources of power outside of the grid, like nuclear and renewables, to power data center campuses. But no matter where the energy comes from, the power demand is still unsustainable at its current rate of growth.

Cooling load is expected to increase further as ambient temperatures, server density, and chip power also rise. Heat from servers and processing warms the internal air temperature which must be cooled to preserve hardware life expectancy, driving heavy focus on climate control.

Cooling these campuses efficiently is central to mitigating data center power demands. Inefficient cooling systems incur far higher operating and maintenance costs while consuming energy avoidable with more efficient internal cooling systems and tighter building envelope elements. Cool air exfiltration and energy leaks through the building façade are exacerbating campuses energy expenditure unnecessarily.

The Building Envelope: The Key (“QEA”) to Efficiency

As energy efficiency is critical to meeting demand, data centers cannot ignore the building envelope in their energy use strategy. Walls, windows, and the roof, some key elements of the building envelope, must effectively keep cool air in and warm air out to avoid any unnecessary energy use.

A well-built building envelope ensures that energy is used optimally, which streamlines both energy demand and costs. For high-energy use facilities like data centers where use and costs are high at their baseline, understanding and addressing the building envelope’s impact is key to energy optimization. The US Department of Energy states that “by improving energy efficiency, the Data Centers sector could save billions in both costs and kWh of energy.”

QEA’s audits quantify energy loss across the building envelope and pinpoint building envelope efficiency and resiliency issues by leveraging drones, thermography, and patented software. Using this data, QEA recommends targeted actions to optimize envelope tightness and efficiency while maximizing return on investment. QEA has audited several large data centers, delivering detailed insights to inform customized retrofits that ensure efficient cooling systems. Contact QEA today for a free quote on a building envelope audit for your data center or building portfolio.

Tightening Building Envelopes: Smart Retrofits to Reduce Energy Costs

qeatechmarkstg on July 23, 2025

The building envelope—the physical barrier between a structure’s interior and exterior—is fundamental to energy efficiency, resiliency, and operational savings. At QEA Tech, we leverage advanced thermography and AI-driven analytics to identify and quantify energy loss, inform targeted retrofits, and deliver measurable results. Our focus on envelope tightness is driven by its proven impact: reducing air infiltration and thermal leakage through the building’s exterior directly lowers energy loss and the heating, ventilation, and air conditioning (HVAC) load required to maintain desired internal temperatures. The EPA estimates that a well-sealed envelope can lead to an average of 15% savings on heating and cooling costs and an average of 11% savings on overall energy costs.

Retrofitting Envelopes to Optimize HVAC Performance

As energy costs rise and building codes increasingly require lower energy consumption, addressing envelope vulnerabilities is an important first step toward energy savings and building resiliency. 40% of the primary energy used in buildings in the United States can be attributed to heat transfer and leakages in building envelope components. Optimizing envelope components—walls, roofs, windows, and doors—can negate inefficiencies attributed to energy leakage and yield substantial reductions in HVAC operational costs, energy use, and carbon emissions.

As HVAC systems represent a major share of building energy consumption, improving envelope tightness directly influences HVAC design and operation. Reducing air and thermal leakage decreases heating and cooling demand, enabling the installation of smaller, more efficient HVAC units. This not only lowers initial capital costs but also reduces ongoing energy expenses, as a secure envelope helps maintain indoor temperatures more efficiently.

Proven Success: Energy Savings in Colorado

In Colorado, the renovation of the two-story, 46,000-square-foot Denver Federal Center achieved a reduction in air leakage of more than 50%. Researchers then used these results to simulate energy savings across different ASHRAE climate zones and building types, finding that enhanced airtightness could lead to substantial reductions in energy consumption and improve HVAC efficiency.

*Rocky Mountain Institute, February 2017 https://rmi.org/wp-content/uploads/2018/10/RMI-Innovation-Center-Overview-2017.pdf*

Further, the Rocky Mountain Institute (RMI) Innovation Center in Basalt, Colorado, designed to meet and exceed the most stringent airtightness standards, was meticulously engineered to minimize thermal bridging and air infiltration, allowing the HVAC system to operate at a fraction of conventional capacity. The Innovation Center uses 74% less energy than comparable office buildings with HVAC operational costs accounting for only 6% of total energy use. The project achieved a 4-year payback through these savings.

These case studies demonstrate that by prioritizing envelope-first design, developers and engineers can downsize HVAC equipment, cutting initial costs and significantly saving on operational energy use. Tightening the building envelope transforms HVAC from an energy hog into a pay-back tool as ‘the most efficient watt is the one never used.’

Understanding Building Envelope Performance First

The technical evidence is clear: tightening building envelopes is among the most effective strategies for reducing HVAC loads and optimizing building performance. The combination of reduced energy consumption, lower HVAC equipment requirements, and improved operational efficiency makes envelope improvements a critical component of high-performance building design and retrofit strategies. By prioritizing envelope improvements, stakeholders can ensure that subsequent upgrades are appropriately scaled, avoiding over-engineering and unnecessary costs.

As the industry continues to pursue electrification and decarbonization goals, envelope improvements provide the foundation for building an efficient, resilient, and sustainable built environment while optimizing capital and operational expenditures.

About QEA Tech

Understanding specific vulnerabilities in the building envelope can decrease the upfront costs of retrofits and provide a pathway to future energy savings. QEA Tech pioneered and patented technology that pinpoints weaknesses in the building envelope, quantifies energy loss and post-retrofit savings, and recommends targeted retrofit measures that optimize energy efficiency and return on investment. Its model is informed by the largest thermal dataset on building envelopes, collected from more than 700 buildings audited including commercial, industrial, institutional, multi-family, airports, and museums.

Interested in gaining a comprehensive understanding of risks and energy loss across your building envelope? Connect with QEA Tech for a free quote for your building portfolio.

What to Ask Building Envelope Analysis Vendors for Optimal Insights

qeatechmarkstg on July 11, 2025

QEA Tech has long been a pioneer in leveraging AI, drones, and thermography to conduct building envelope analysis, precisely identifying issues, quantifying energy loss, and delivering highly targeted retrofit recommendations with optimal payback periods and return on investment (ROI). While QEA Tech was officially incorporated in 2019, our core technology underwent extensive development for several years prior.

In QEA Tech’s formative years, when first engaging with prospective clients, the concept of using AI and drones to conduct building envelope analysis was largely overlooked. At best, the methods employed were manual, arduous, and rudimentary. Common practices included using a handheld camera to capture a limited number of thermal or visual images from the ground, followed by a laborious manual review to interpret anomalies. Other scenarios involved individuals physically walking roofs or using scaffolds to visually inspect building facades. Even when helicopters equipped with thermal cameras were deployed to capture larger quantities of data, the resulting images required manual, subjective interpretation. These conventional methods proved intrusive, expensive, often open to misinterpretation, non-scalable, and fundamentally failed to yield actionable data or insightful conclusions on the building envelope.

Today, numerous emerging startups are leveraging AI, drones, and thermography for building envelope analysis. However, it is important to ensure that these technologies are being used in a way that ensures detailed analysis and accuracy. To ensure the AI and drone service you select provides reliable conclusions and recommendations, consider asking the following critical questions:

How many buildings have you directly analyzed?

A significant challenge in developing and refining AI models and algorithms for accurate issue diagnosis and energy loss quantification is the acquisition of a sufficient volume of high-quality data. The comprehensive accumulation of such data necessitates the completion of hundreds of direct, hands-on projects. While some firms may claim an abundance of data points, these are often derived from publicly available sources or peripheral drone scans, which do not offer the granular detail required for an in-depth building envelope analysis.

QEA Tech has successfully completed nearly 800 building envelope projects as of 2025. In each of these engagements, we meticulously captured thousands of data points and measured R-values for every square inch of the structures. Furthermore, we integrated diverse building documentation, including architectural drawings and utility bills, to continuously refine our analysis and retrofit recommendations.

What kind of building envelope data do you capture?

A high volume of visual and thermal images at a close distance using high-resolution cameras is essential to mitigate reflections and distortions. In contrast, some firms may use drones to superficially capture a few dozen images of multiple buildings or large areas of the building envelope. Images obtained through these less rigorous methods offer a crude resolution, precluding any granular or accurate analysis, thereby rendering conclusions and recommendations unreliable.

QEA Tech captures thousands of high-resolution RGB and thermal images for each building. We employ a number of proprietary techniques and trade secrets in the capture and processing of these images. We also leverage proprietary sensors that collect various data points that are vital for calibrating our energy loss measurements.

What exactly does your AI do?

“AI” has become a ubiquitous and often overused term. It is important to understand that not all AI is developed or functions identically. To be effective, AI needs a large volume of high-quality data to continually tune and refine its capabilities.

QEA Tech has meticulously developed, trained, and fine-tuned our AI models specifically to quantify energy loss and identify distinct signatures and patterns associated with issues such as moisture penetration, thermal bridging, and missing or inconsistent insulation. QEA Tech holds several patents for these advanced capabilities.

How specific are your retrofit recommendations?

Some firms may provide generic, “cookie-cutter” recommendations that are high-level, often accompanied by inaccurate or entirely absent costing information.

QEA Tech delivers specific and actionable retrofit measures for the building envelope, complete with payback periods and ROI, directly tailored to the issues and risks identified through our analysis. QEA Tech offers a comprehensive menu of repair and retrofit options that are utilized to develop robust business cases for our clients. QEA Tech’s detailed approach empowers clients to forecast and plan their budgets for several years into the future, enabling them to prioritize which repairs and retrofits should be executed on which buildings, and in what sequence. Our methodology provides a quantitative, evidence-based decision-making framework to justify both operational and capital expenditures with concrete data.

What is the actual energy loss you are quantifying?

While many firms claim to “quantify energy loss,” this assertion can often be vague. Firms often rely heavily on generic assumptions based on the building type, materials or age. It is critical to also analyze data such as energy utilization and costs to begin to accurately quantify energy loss.

QEA Tech precisely quantifies the effective U-value or R-value and megawatt-hours (MWh) of energy loss for every square inch of the building envelope and for each individual building envelope element. We meticulously measure the actual energy transmittance throughout the building envelope, incorporating on-site data pertaining to various temperature and atmospheric conditions, building documentation and drawings, energy utilization and rates, and building usage data to ensure an exceptionally accurate measurement of energy loss. This level of granularity is what allows us to recommend highly targeted retrofits with detailed payback and ROI calculations, which are instrumental in developing business cases for internal budget planning and approvals by our clients.

*Example of building envelope energy loss measurements conducted by QEA Tech’s software.*

What kind of patents are in place, and are they directly relevant to building envelope analysis?

Firms should be able to clearly articulate what renders their software proprietary and unique. Some may utilize open-source software components that do not offer the requisite degree of detailed analysis and accuracy.

QEA Tech holds several patents, including those for the quantification of energy loss using thermal imaging and pattern recognition of thermal anomalies. Additionally, QEA Tech possesses a number of trade secrets related to the capture, processing, and analysis of building data.

Do you have a Building Science team?

The presence of dedicated experts who conduct quality control on AI-driven analysis and apply their specialized knowledge to tailor results and recommendations to building needs is paramount. Every building is unique in its construction, characteristics, usage, maintenance history, and resilience to environmental elements. Therefore, firms must avoid a “cookie-cutter” approach to analysis and exercise diligence in formulating specific and customized recommendations for repairs and retrofits.

QEA Tech has a dedicated Building Science team comprising experts in architecture, mechanical engineering, facilities management, and building science. Our team collaborates seamlessly with our proprietary software to ensure highly detailed and customized analysis and recommendations for each building. Over several years, our Building Science team have played a critical role in refining our AI software’s capabilities. Our Building Science team is engaged throughout the entirety of each project, from preliminary building reviews and advising on drone and data collection protocols, to pinpointing specific areas on the building envelope requiring additional attention and data, to quality control of software-generated analysis, and developing tailored recommendations for repairs and retrofits with detailed payback and ROI calculations.

Understanding the details of what a vendor can provide is essential to ensuring you are getting optimal value in the analysis of your building envelope. Interested in receiving thorough, tailored insights on the performance of envelopes in your portfolio? Contact QEA Tech for a free preliminary quote.

Pioneering AI-Powered Building Envelope Audits: Reflections from a Serial Energy Entrepreneur

qeatechmarkstg on July 9, 2025

In 2019, Peyvand Melati founded QEA Tech (QEA). As a serial entrepreneur of climate focused companies, QEA, Melati’s third-energy focused software venture, focuses on improving existing buildings which are responsible for 40% of global energy consumption. His goal was to transform building envelope efficiency through cutting edge technologies including artificial intelligence (AI), drones, and thermography.

The building envelope – the physical separator between the conditioned internal environment and the external environment – was generally viewed as immutable without considerable investment and reconstruction. Prior to QEA, the standard inspection method involved walkthroughs with handheld thermal cameras, which provided limited visibility and effectiveness in diagnosing building envelope issues. However, with drone and AI technology, Melati believed that these non-invasive technologies could capture precise and actionable data on the building envelope, opening the door to targeted building envelope retrofits which improve building efficiency and contribute toward sustainability goals without necessitating major reconstruction.

The Early Days of Auditing: Shutting Down Streets and Police Detail

As the pioneer of drone and AI-based envelope auditing, QEA initially faced skepticism within the industry. Stakeholders questioned both the practicality and safety of drone inspections, viewing them as risky, unproven, and disruptive to public spaces.

Melati recalled one of the earliest and most public demonstrations of QEA’s innovation involved shutting down one of the busiest streets in Toronto, complete with police detail and complex coordination with local authorities. The drone, which was 4 ft by 4 ft, caught the attention of passerby and sparked both curiosity and concern. Although the operation garnered much attention, it proved the utility and potential of drone technology to be an effective approach to building envelope auditing.

QEA now uses much smaller drones, projects require less logistical coordination, and flights rarely attract the attention of people in the area. Drone technology has become the industry standard for comprehensive, scalable building envelope assessments.

Detecting the Undetectable: Proving Value and Market Acceptance

A key early moment that validated QEA’s innovative approach to major real estate owners and the industry at large involved the discovery of hazardous ice accumulation hidden in the façade of a large commercial building. Unlike previous inspection methods, QEA’s drone-based inspection captured thousands of thermal and visual images, and its patented software provided a granular level of detail in the analysis of the captured images. The façade issue would have been undetected by previous inspection methods, proving the quality and value of QEA’s precise methodology.

Similarly, for another building, a QEA audit identified an abnormal heat spot on the roof. The audit sparked an investigation into the heat source, which found a disconnected duct that was previously unknown to the building management and explained the building’s excessive energy bills due to the stress on the heating and cooling system. QEA’s audit identified a fix to this issue that was straightforward, inexpensive, and led to substantial long-term energy savings.

Better Drones and Better Analytics: Six Years and 700 Buildings Later

In its early history, QEA committed substantial resources to developing sophisticated, quantified analytical capabilities. Infrared imagery AI analysis requires an expansive dataset to develop the unparalleled level of precise detail that QEA provides today. It took nearly two years of intensive dataset development and approximately 150 buildings by 2022 to generate QEA’s highly accurate analysis capabilities. QEA’s extensive and proprietary dataset collected from hundreds of buildings leads the industry in offering unmatched and reliable insights into thermal abnormalities and building envelope performance.

Further, QEA’s drones today are smaller, more agile, and equipped with advanced sensory arrays which enhance their stability, reduce risk, and improve the quality of data captured during inspection. Coupled with proprietary IoT sensors, QEA scans identify a wide array of envelope issues at sub-inch levels.

As QEA tops its 700th project, QEA’s AI-powered analytics are backed by its leading dataset on the building envelope and continually improve the unrivaled precision of quantified diagnostics at the industry’s leading level of accuracy. Further, QEA has patented its energy quantification methodologies and specialized AI models for detecting envelope anomalies, reinforcing the company’s leadership and technical expertise.

Topping 1000 Buildings: From Diagnostics to Targeted Action Plans

QEA’s industry expertise and precision data led to the second phase of its product: comprehensive retrofit recommendations. QEA audits now include detailed diagnostic assessments, actionable and specific retrofit recommendations, and projected energy savings reports, making the technology not only valuable for understanding the building envelope at a highly detailed level, but crucial for informed decision-making and strategic action in building management.

Reflecting on QEA’s evolution, Melati highlights that while diagnostic excellence remains essential, the ultimate objective is to drive tangible results in the built environment—measurable energy conservation and decarbonization. QEA’s emphasis on actionable insights reflects its broader commitment to global sustainability objectives and environmental protection.

Today, QEA has established itself as the global leader in data-driven building envelope assessments. Having completed projects for more than 60 clients in North America, the UK, Europe, and Asia, QEA will soon surpass a landmark 1000 buildings audited. Since 2019, many drone-based inspection services for various use-cases have emerged. However, QEA maintains the first-mover advantage. The company is distinguished by its speed, non-invasiveness, and comprehensive accuracy, delivering precise, quantified insights that directly support targeted energy efficiency improvements. With the largest thermal dataset on building envelopes in the world and a first-of-a-kind experience alongside proprietary industry knowledge, QEA ensures its edge over other building envelope solution providers.

Interested in receiving detailed and actionable insights to improve building envelope performance? Contact QEA Tech for a free quote.

Unlocking Sustainable Success: How QEA Tech Helps Achieve BOMA BEST

qeatechmarkstg on April 14, 2025

Sustainability is essential to optimizing building performance, ensuring efficiency and comfort. However, navigating how to effectively implement building sustainability measures can be overwhelming, with an abundance of different green initiatives and solutions to focus on. The BOMA BEST program is helping to ease this process for building owners and managers, offering a clear framework on how to assess and improve sustainability for all building types. Managed by the Building Owners and Managers Association (BOMA), BOMA BEST encourages smart, sustainable solutions for existing buildings. Since its launch in 2005, BOMA BEST has grown into North America’s largest environmental assessment and certification program for existing buildings.

Who Can Apply?

To be eligible for BOMA BEST certification, a building must have been operational for at least 12 months. The program covers a broad range of commercial building types including:

1. Office Buildings

2. Enclosed Shopping Centres

3. Health Care Facilities

4. Light Industrial Properties

5. Multi-Unit Residential Buildings

6. Open-Air Retail

7. Universal

Two Paths to Certification: BOMA BEST Sustainable vs Smart

BOMA BEST Sustainable

This stream focuses on the environmental and operational sustainability of a building. Promoting the continuous improvement of building operations and maintenance, it guides owners and operators on how to decarbonize, reduce water and waste, retrofit, and prepare against climate risk. Certification is achieved through a structured questionnaire that covers:

1. Energy and Carbon

2. Water

3. Indoor Air Quality & Hazards

4. Accessibility & Wellness

5. Custodial & Waste

6. Resilience & Site Planning

💡 How QEA Tech Can Help

QEA Tech has a strong track record for helping clients achieve the energy and carbon related requirements of this certification. Detailed and accurate data on the energy consumption and carbon emissions of a building is essential to achieving this certification with the completion of building envelope assessments, deep energy and carbon retrofit studies, quantification and benchmarking of carbon emissions, and third-party certification of a building’s energy use and carbon emissions being required. The implementation of low-cost envelope retrofits and evidence of improved energy efficiency due to these measures is also necessary for full certification. QEA Tech’s AI-powered building envelope audits can play a critical role in helping buildings achieve the BOMA BEST Sustainable certification by offering:

Proprietary AI-driven assessments that deliver precise data on energy loss, carbon emissions, and actual effective U-values for the entire building envelope.

Exact identification of a wide range of building envelope issues.

Custom, tailored retrofit recommendations with details on potential energy savings, implementation cost, and payback periods.

Post-retrofit verification audits to provide evidence of improved energy efficiency and reduced carbon emissions.

BOMA BEST Smart

As buildings embrace new and innovative technologies, BOMA BEST Smart was created to guide the digital transformation of buildings, supporting the integration of intelligent systems to drive sustainability, enhance tenant experiences, and deliver better financial value.

Focus areas included in the questionnaire for this certification include:

1. Security and Safety

2. Operations and Management

3. Network and Systems Integration

4. End-User Experience

5. Reporting and Analysis

💡 How QEA Tech Can Help

QEA Tech supports deliverables required for the Smart certification by providing:

Energy efficiency analytics and reporting related to building envelope energy loss.

Carbon emissions reporting, detailing the total carbon emissions for each building envelope element as well as the total amount of preventable emissions throughout the envelope.

QEA Tech’s use of AI software and drones allows for our audits to be highly scalable and non-intrusive, allowing for building owners to meet the sustainability reporting requirements for their portfolio efficiently and cost-effectively.

Understanding the Levels of Certification

BOMA BEST awards certifications based on a building’s performance across several benchmarks. The better a building performs on the detailed questionnaire, the higher the level of certification it can achieve. Certifications range from:

Baseline: 0%–29% of questionnaire requirements completed.
Bronze: 30%–59% of questionnaire requirements completed.
Silver: 60%–79% of questionnaire requirements completed.
Gold: 80%–89% of questionnaire requirements completed.
Platinum: 90%–100% of questionnaire requirements completed.

Baseline practices (minimum requirements for all buildings) must be met to achieve any level of certification. There are 12 baseline practices for the Sustainable Buildings Certification and 5 baseline practices for the Smart Buildings Certification, with baseline practices being listed at the beginning of each respective questionnaire.

Next Steps for Pursuing BOMA BEST

Whether you’re focused on cutting costs, digitizing building operations, or achieving sustainability goals, BOMA BEST provides guidance on the steps necessary to achieve optimal building performance. Contact QEA Tech to learn more about how we can support your BOMA BEST certification and get a free quote on a building envelope audit.