TECO Expands Presence in Southeast Asia with Major Contracts
TECO Electric & Machinery Co., Ltd. (TWSE: 1504) recently marked a significant achievement in its ongoing expansion within Southeast Asia by securing two major contracts totaling approximately USD79 million. These contracts, awarded by a leading U.S.-based cloud service provider, involve crucial projects located in Malaysia and Thailand, focusing on advanced data center solutions.
Project Highlights and Value
The contracts encompass vital work in power system integration and the establishment of extensive fiber-optic telecommunications infrastructure. This development highlights TECO's commitment to enhancing its capabilities and delivering high-efficiency services to its international clients.
Chairman's Vision for Future Growth
TECO's Chairman, Morris Li, expressed pride in the company's ability to obtain these prestigious projects, emphasizing the significance of its strong reputation in project execution and engineering integration capabilities across Southeast Asia. As technology continues to evolve, TECO is well-poised to meet the increasing global demand for AI computing and cloud services in 2026.
Details of the New Projects
Both projects are situated in strategic data center hubs in the region. For the Malaysia initiative, TECO will undertake the electrical package of the facility, demonstrating its competitive edge in hyperscale data center power system integration and design. Completion is anticipated around April 2027.
The Thailand project marks a notable milestone for TECO as it represents the company's first successful contract in this market. TECO will be responsible for constructing the hyperscale fiber-optic telecommunications system, ensuring high-speed data transmission essential for modern computing needs. This project is projected to conclude by December 2026.
Building a Sustainable Future
In 2025, TECO had already made strides in this field by securing two data center-related engineering contracts in Malaysia, enhancing its installed capacity significantly. The recent orders, combined with previous successes, reflect TECO's established reliability and trust amongst clients in Southeast Asia.
Strategic Transformation to AI Data Centers
Undergoing a strategic transformation into an AI Data Center Solutions Provider, TECO is focusing on enhancing its international footprint within the cloud service and AI computing supply chain. This plan aims to increase the company's market share significantly and propel operational growth throughout 2026.
Commitment to Renewable Integration
TECO is adamant about directing its efforts in its Power and Energy Business Group toward key markets, including Malaysia, Thailand, and Taiwan. There is a strong emphasis on leveraging cross-business synergies in renewable energy solutions. The company envisions the integration of advanced data center options with green energy, extending its reach to additional international markets.
By advancing these integrated applications, TECO aims to assist customers worldwide in building intelligent computing infrastructures that prioritize energy efficiency, reliability, and sustainability.
Frequently Asked Questions
What is the total value of the contracts TECO secured?
The total value of the contracts secured by TECO is approximately USD79 million.
In which countries are the data center projects located?
The data centers are located in Malaysia and Thailand.
What specific services is TECO providing for these projects?
TECO is providing power system integration and fiber-optic telecommunications infrastructure services.
When are the projects expected to be completed?
The projects are scheduled for completion in April 2027 for Malaysia and December 2026 for Thailand.
How is TECO planning to grow in the future?
TECO aims to expand its presence in AI computing and data center solutions while integrating renewable energy into its offerings.
