The Taiwanese manufacturing company Teco Electric & Machinery Co. has secured approximately $80 million in contracts to develop data center infrastructure in Malaysia and Thailand, the company announced Jan. 5.
The agreements, valued at a combined 2.5 billion New Taiwan dollars, involve projects for an unnamed U.S. cloud service provider. The deals mark a significant expansion for the Taiwanese manufacturer as it pivots toward the high-growth sector of artificial intelligence and cloud computing.
Expansion into Southeast Asia
Teco Chairman Andy Lee (利明献) said the contracts validate the company’s engineering integration capabilities in the Southeast Asian market.
“As global AI computing demand and cloud services continue to expand, Teco will continue providing reliable, efficient, and highly flexible one-stop data center solutions,” a statement by Lee read.
The project in Malaysia focuses on power system integration and electromechanical engineering for a hyperscale data center. It is scheduled for completion in April 2027.
In Thailand, Teco was selected to construct a hyperscale fiber optic network designed to support high-volume data transmission. The company noted this is its first victory over international competitors for a data center contract in the Thai market. The project is expected to be completed in December 2026.
Strategic Shift to AI and Green Energy
The announcement follows a series of wins for Teco in the region. Last year, the company secured two data center engineering contracts in Malaysia with a total capacity of 178 megawatts and a value of nearly 170 million Malaysian ringgit.
Company officials indicated that Teco's Power Energy Business Group is targeting core markets in Malaysia, Thailand, and Taiwan. The strategy involves integrating green energy solutions and service capabilities to support the high power requirements of AI infrastructure.
Teco said it aims to increase its market share in the supply chains of international cloud service providers, positioning itself as a key partner for "intelligent computing power infrastructure" in the Asia-Pacific region. （Related： Taiwan's Silicon Dreams Through US Alignment Are a Fantasy ｜ Latest ）
