TECO Electric & Machinery Co., Ltd. (“TECO”, TWSE:1504) today (25th) held an official signing ceremony at its Taipei headquarters with Malaysian engineering company Dynaciate Engineering Sdn. Bhd. (“Dynaciate”), announcing the completion of the acquisition agreement between the two parties. The agreement was signed by TECO Chairman Morris Li and Dynaciate CEO Ng Kim Thiea, with management teams from both companies attending the ceremony to witness this important milestone in TECO’s accelerated expansion into Southeast Asia’s AI data center infrastructure market and the global modular data center market.
According to TECO’s earlier public announcement, the transaction involves an investment of approximately MYR 200 million (around USD 50.8 million) and is expected to close before the end of August. Upon completion, TECO will hold approximately 78% equity ownership in Dynaciate. Dynaciate will serve as both a global manufacturing hub for Modular Data Center (MDC) production and an engineering hub supporting TECO’s expansion across Southeast Asia, particularly in data center infrastructure projects. Over the next three to five years, TECO expects the acquisition to generate business growth worth several times the original investment value and further enhance TECO’s global competitiveness in data center infrastructure engineering solutions and power equipment products.
At the signing ceremony, TECO Chairman Morris Li stated that, driven by collaboration opportunities with leading global Cloud Service Providers (CSPs), TECO has actively expanded into the fast-growing data center market in recent years. The acquisition of Dynaciate represents one of the TECO Group’s core strategic initiatives. Dynaciate’s industry-leading expertise in modular prefabrication has become a key driving force behind TECO’s continued expansion in the modular data center market. Through the deep integration of both companies, TECO has significantly enhanced the execution efficiency and overall in-house manufacturing ratio of its modular prefabrication capabilities. In particular, the collaboration has successfully reduced data center delivery timelines to as little as six months, providing a distinct advantage in rapid deployment and accelerating the commercialization of data centers.
Dynaciate Looks Forward to Entering a New Phase of Growth with TECO
Dynaciate CEO Ng Kim Thiea said the company is honored to partner with TECO and embark on a new phase of growth together. He noted that Dynaciate has accumulated extensive experience in engineering, steel fabrication, and large-scale industrial projects for multinational corporations over the years, and since 2025 has actively entered the data center engineering market by undertaking projects for international CSP clients.
Mr. Ng added that Dynaciate’s modular prefabrication and engineering execution capabilities complement TECO’s strengths in electromechanical integration and energy systems for data center solutions. This strategic alliance is expected to significantly improve project efficiency and delivery capabilities while enabling both companies to jointly expand across Southeast Asia and develop more competitive infrastructure solutions and product platforms for the data center industry.
Dynaciate’s headquarters and manufacturing facilities are located in the Pasir Gudang Industrial Area of Johor Bahru, Malaysia. The site spans approximately 36,000 square meters, with a total building area of around 14,000 square meters. It includes eight production buildings dedicated to stainless steel and carbon steel fabrication and is eligible for export tax incentives, supporting future global supply chain deployment.
The company currently employs 265 staff members, including more than 200 project management personnel and engineers with strong engineering execution capabilities. The core management team has an average age of approximately 40 and possesses multilingual communication skills, along with extensive experience independently managing large-scale international project sites.
Strengthening Large-Scale Data Center Project Delivery Capabilities to Meet Global CSP Demand
TECO has accumulated more than 20 years of experience in data center infrastructure engineering. Following its acquisition of Malaysia-based NCL Energy in 2025, TECO further expanded its presence and visibility in Southeast Asia’s data center infrastructure market by strengthening local electromechanical and telecommunications engineering capabilities. The acquisition of Dynaciate further complements TECO’s expertise in civil engineering, mechanical structures, and HVAC systems.
Moving forward, NCL and Dynaciate are expected to form a highly complementary cross-border engineering platform that will significantly expand TECO’s engineering team scale and increase its capacity to undertake large-scale data center projects. With Malaysia serving as the regional hub, TECO plans to gradually expand operations into Thailand, Indonesia, the Philippines, and other high-growth Southeast Asian markets, establishing a multinational electromechanical engineering network.
Production Expansion and Financial Outlook: MDC Business Expected to Become a Major Growth Driver
In terms of financial performance and production outlook, TECO remains highly optimistic about the acquisition. Following the integration of Dynaciate, partial revenue contributions are expected to be recognized in the second half of this year, with a target of generating revenue growth several times greater than the original investment before 2030.
TECO also estimates that following the acquisition of Dynaciate, its future data center-related revenue mix will shift significantly, with approximately 65% expected to come from Modular Data Centers (MDCs) and prefabricated products, while the remaining 35% will derive from AI data center (AIDC) engineering projects. This transformation is expected to substantially increase the proportion of TECO’s overall data center business. The company forecasts that data center-related revenue within its Power & Energy Business Group will rise from less than 10% previously to approximately 30% this year, becoming a key growth driver for the Group’s overall revenue expansion.
