#Taiwan #Taipei #AIDC #TECO #Dynaciate

TECO's Milestone Acquisition of Dynaciate Engineering

TECO Electric & Machinery Co., Ltd. (stock code: TWSE 1504) proudly announced the completion of its acquisition agreement with Malaysian engineering firm, Dynaciate Engineering Sdn. Bhd., during a signing ceremony held on May 25, 2026. This pivotal agreement marks a significant step in TECO’s strategy to expand its footprint in Southeast Asia, particularly in the areas dense with artificial intelligence data center (AIDC) infrastructure and global modular data center markets.

The investment for this strategic move amounts to approximately MYR 200 million (around USD 50.8 million), with TECO acquiring about 78% of the equity stake in Dynaciate. This enables Dynaciate to act as TECO's global manufacturing center for Modular Data Center (MDC) products, alongside serving as an engineering hub that supports TECO's expansion endeavors throughout Southeast Asia, with a strong focus on data center infrastructure projects.

Morris Li, TECO's chairman, highlighted during the event that this alliance significantly boosts both companies' execution efficiency and enhances the overall in-house manufacturing capabilities related to modular prefabrication. He pointed out that the partnership has successfully minimized the delivery timelines for data centers down to just six months. This rapid turnaround provides TECO with a competitive edge in the swift deployment and commercialization of data center projects.

Furthermore, Ng Kim Thiea, CEO of Dynaciate, expressed his enthusiasm about the collaboration stating that Dynaciate brings extensive expertise in engineering, steel fabrication, and handling large-scale projects for multinational clients. Since stepping into the data center engineering market in 2025, Dynaciate has successfully undertaken various projects for leading international Cloud Service Providers (CSPs).

The operational base for Dynaciate includes an extensive manufacturing facility situated in the Pasir Gudang Industrial Area of Johor Bahru, covering around 36,000 square meters, which accommodates eight production buildings specialized in stainless steel and carbon steel fabrication. Additionally, this facility is eligible for export tax incentives supporting future global supply chain developments.

Looking ahead, TECO anticipates that approximately 65% of its forthcoming revenue from data center-related activities will stem from MDCs and prefabricated products, while the remaining 35% will derive from engineering projects associated with AIDC. This transformational shift is predicted to notably enhance TECO’s data center revenue stream, which is expected to jump from virtually under 10% to 30% of its Power & Energy Business Group revenue this year. This upward trend is anticipated to become a crucial driver for growth within the company.

The acquisition signifies a new era for TECO as it seeks to broaden its service offerings and enhance its market presence amid the ever-growing demand for AI data center solutions. As the global landscape evolves, TECO stands poised to leverage Dynaciate’s expertise and infrastructure, ultimately striving toward becoming a formidable force in the technology sector.

For additional details, visit TECO's official website and Dynaciate's website.