TAIPEI (Taiwan News) — Teco Electric & Machinery said Tuesday that its board of directors approved the acquisition of Malaysia's Dynaciate Engineering in a deal estimated at NT$1.6 billion (US$51 million).

The transaction, scheduled to be completed in August, will allow Teco to hold a controlling stake of up to 77.9% in the company, with revenue and profit contributions expected to begin in the second half of the year. Teco said the acquisition is a key part of its strategy to accelerate its transformation into an AI data center solutions provider, in a press release.

The company said the deal would expand its modular data center engineering capabilities in Southeast Asia. Dynaciate, established in 2002, provides engineering and construction services, and since 2025 has undertaken data center projects for international cloud service providers.

Teco said rapid growth in AI has prompted it to diversify into modular data center construction and systems integration. It said Dynaciate’s large-scale manufacturing facility, which specializes in piping and prefabrication technologies, could help it secure additional modular data center orders and expand projects for cloud service providers, per a press release.

It added that Dynaciate’s multinational technical workforce would improve the flexibility of cross-border project execution and manpower allocation while strengthening engineering services across Southeast Asia. The company said the acquisition would also help meet the global expansion needs of international cloud service providers.