TAIPEI (Taiwan News) — Tecobar, a subsidiary of Teco Electric & Machinery, opened a plant in Malaysia’s Penang on Wednesday to meet growing orders for AI data center equipment.
At the opening ceremony, Teco Chair Morris Li (利明献) said the city is a major hub for electronics and manufacturing in Southeast Asia. The plant will serve cloud providers, data centers, and the power infrastructure supply chain, per CNA.
Teco invested NT$370 million (US$11.7 million) in the plant, which covers 3.5 hectares and has an annual busbar capacity of 400,000 meters. Busbars are systems used to transmit power, data, or control signals built in data centers and high-performance computing equipment.
Rising demand for AI and cloud services is driving higher electricity consumption and the need for infrastructure upgrades. However, limits in traditional cables are driving a shift to busbars with higher current capacity and modular designs.
Li said the company aims to become a provider of comprehensive AI data center solutions, including electromechanical engineering, fiber optics, and power equipment. He added Malaysia is expected to build 20 AI data centers in the country over the next three years and the new plant will help capture those opportunities.
The Malaysian Investment Development Authority said Teco’s investment will boost the Penang’s development and create jobs. It added the company’s AI infrastructure solutions are expected to attract more international cloud service providers to set up data centers in Malaysia.
In March 2025, Teco spent about NT$520 million to acquire Malaysia-based NCL Energy Sdn Bhd and its subsidiary NCL Green Sdn Bhd. The deal has helped the company expand into Malaysia’s data center, renewable energy, and electromechanical engineering markets.
Additionally, since last year, Teco has been working with Foxconn on AI modular data centers, energy-efficient equipment, and smart manufacturing. The company has also secured equipment orders for Foxconn’s new plants.
