TAIPEI (Taiwan News) — Teco Electric & Machinery will acquire Malaysia-based engineering and construction firm Dynaciate for NT$1.6 billion (US$50 million) to strengthen its expansion in the AI data center sector across Southeast Asia.
The acquisition is expected to be completed by September, after which Teco will hold approximately a 78% stake in Dynaciate. Teco said it plans to position Dynaciate as a key manufacturing base for its global modular data center supply, per CNA.
To meet rising demand from global cloud service providers, Teco Chair Morris Li (利明献) said it has begun expanding its data center business. The company noted that Dynaciate’s modular manufacturing capabilities could enhance its power and generator systems while reducing data center delivery timelines to as short as six months.
Teco estimated that 65% of its data center revenue will come from modular data center products, while the rest will come from AI data center engineering services. It also projected that revenue from the data center segment will rise from less than 10% previously to 30% this year.
Dynaciate Managing Director Ng Kim Thiea said the company has undertaken projects for major international clients, including steel plant construction and large-scale industrial developments. Since last year, it has also entered the data center engineering segment for global cloud service providers.
He added that its engineering capabilities are expected to support Teco in integrating electromechanical equipment and energy systems into data center projects.
Dynaciate’s Malaysian facility spans approximately 36,000 square meters of land, with a built-up area of around 14,000 square meters and eight factory buildings. Teco added that it plans to leverage the site’s manufacturing capacity to meet rising data center demand in Thailand, Indonesia, and the Philippines.
In April, Tecobar, a subsidiary of Teco, opened a plant in Malaysia’s Penang to meet growing orders for AI data center equipment. The facility serves cloud service providers, data centers, and the power infrastructure supply chain amid rising demand for infrastructure upgrades driven by AI and cloud expansion.
Li said Malaysia is expected to build around 20 AI data centers over the next three years, and the new plant will help the company capture related opportunities.
