TAIPEI (Taiwan News) — Teco Electric and Machinery Co. General Manager Kevin Kao (高飛鳶) said the company will continue expanding its data center equipment orders in Taiwan and Southeast Asia, with next year’s demand expected to come mainly from Taiwanese clients.

At an investor conference on Thursday, Kao said Teco’s data center orders in Southeast Asia have entered the construction phase, mainly in Malaysia and Thailand, and are expected to begin contributing to profits. He added the company’s US data center expansion hinges on securing suitable sites and power infrastructure, with construction likely to start in the second half of next year and modularized designs targeted for 2027, per CNA.

Kao said Teco has also moved to expand in the Middle East by building local service networks and establishing a subsidiary in Dubai. He added the company’s September alliance with Saudi Arabia’s Kanoo Energy, which will distribute Teco’s electric motors and related solutions, aims to tap into data center deals in the region.

Teco Chair Morris Li (利明献) said the company acquired Malaysia’s NCL Energy in March and secured two hyperscale data center projects there, involving the installation of fiber-optic network systems for server rooms with a total capacity of 178 MW. The company is also undertaking data center work in Singapore.

Teco’s core data center products include motors, power connectors, generators, transformers, and distribution panels. The company has built over 700 MW of capacity in Taiwan and Southeast Asia, with related revenue expected to rise annually.

In July, Foxconn and Teco formed an alliance through a share swap aimed at expanding AI data-center construction technologies. Foxconn brings server manufacturing and AI hardware integration, while Teco provides heavy electrical, energy management, and cooling system technologies. Teco added that the two companies are in talks over product specifications, certifications, and modularization technologies.

Kao added that the company’s oil-cooled electric drive axle system has secured its first European orders, and its Taoyuan factory has begun test production of transformers, as part of efforts to promote its electric motor products business.

Teco reported third-quarter revenue of NT$14.54 billion (US$469 million), down 6.8% from the second quarter but up 8% year on year, driven mainly by growth in smart energy projects. Net profit for the quarter reached NT$1.59 billion. In the first three quarters, electromechanical products accounted for 49.4% of revenue, smart energy 23.7%, and home appliances 12.1%.