TECO Secures Major Southeast Asia Data Center Projects Worth $79 Million

TECO Electric & Machinery Co., Ltd. has kicked off 2026 with a phenomenal achievement by successfully securing contracts for hyperscale data center projects in Southeast Asia. This significant milestone, valued at approximately USD 79 million, reflects the company’s increasing footprint across the region. The contracts, awarded by a U.S.-based cloud service provider, cover critical aspects such as power system integration and extensive fiber-optic telecommunications infrastructure in Malaysia and Thailand.

Project Details and Importance

TECO’s Chairman, Morris Li, expressed that the successful bid for these projects illustrates the company’s capacity in engineering integration and its reputation in project execution. The projects in Malaysia and Thailand are essential for establishing TECO's status as a prominent provider of AI Data Center solutions in the Asia-Pacific region.

In Malaysia, TECO is set to handle the electrical package for one of the projects, showcasing its prowess in the competitive landscape of hyperscale data center power system integration, engineering design, and project management. This particular project is expected to be completed by April 2027. On the other hand, the Thailand project will see TECO construct a hyperscale fiber-optic telecommunications system, reinforcing the infrastructure necessary for swift data transmission and advanced computing tasks. This project, marking TECO's inaugural data center achievement in Thailand, is projected for completion in December 2026.

Regional Growth and Future Outlook

The recent success builds upon TECO's previous data center projects in Southeast Asia, where, in 2025, the company secured two engineering contracts in Malaysia worth nearly MYR 170 million. These contracts, each contributing an installed capacity of 178 MW, underscore TECO's reputation and trust established in the Southeast Asian market.

Forecasts for 2026 indicate a steady increase in data center-related orders, propelled by the ongoing demand for AI computing and cloud services. TECO aims to further solidify its market share, positioning itself as a vital part of the ongoing transformation within the AI Data Center Solutions sphere.

To augment its capabilities, TECO intends to enhance its presence in the international cloud service and AI computing sectors. This growth strategy is part of a broader effort to boost the company’s overall market share and facilitate significant operational growth in 2026. The Power and Energy Business Group at TECO will continue to target core markets including Malaysia, Thailand, and Taiwan, while also fostering cross-business synergies, especially in renewable energy and energy services.

Commitment to Sustainability

TECO is also committed to integrating green energy solutions into its data centers. By doing so, the company aims to furnish clients with intelligent computing infrastructures that promise energy efficiency, reliability, and sustainability in the long run. This strategy illustrates TECO’s dedication not just to expanding its business, but doing so in a manner that supports environmental sustainability and meets the evolving needs of the global market.

As the data center landscape continues to evolve, TECO Electric & Machinery Co., Ltd. stands poised to make significant strides in Southeast Asia's booming tech market, underlining its role as a key player in establishing robust, efficient, and environmentally friendly infrastructure solutions.