TAIPEI (Taiwan News) — Teco Electric & Machinery is betting that AI data centers will become a much larger revenue source for its power and energy business as it builds out projects in Taiwan and Southeast Asia.
Chair Morris Li (利明献) said AI data center revenue now makes up about 10% of the company’s power and energy business, but could exceed 30% by the end of the year and eventually reach 50%, per CNA.
Li said Southeast Asia is moving faster than North America for now, as major cloud service providers build AI data centers and related infrastructure across the region. North America has shown signs of cooling in the short term, but Li expects investment to pick up again later in the year, according to the report.
Demand from AI companies remains tied to power capacity and token processing needs, he said. Li added that North America will remain a key future market because major cloud providers are still preparing large investments.
Teco has also used acquisitions to strengthen its data center business, per the report. The company signed a deal with Malaysian engineering firm Dynaciate this week, a move aimed at expanding modular data center engineering orders and Southeast Asia infrastructure work.
Li said future acquisitions remain possible if they support new business, technology development, or resource allocation, per the report. He said broader power and energy solutions could also help gross margin pick up throughout the rest of the year.
