TECO Acquires Malaysia’s Dynaciate to Expand AI Data Center Manufacturing

May 26, 2026
TECO Electric & Machinery has completed its acquisition of a 78% stake in Malaysia’s Dynaciate Engineering for about USD 50.8 million, positioning Dynaciate as its manufacturing hub for modular and AI data center infrastructure in Southeast Asia.

TECO Electric & Machinery has completed the acquisition of a 78 percent stake in Malaysia’s Dynaciate Engineering for about MYR 200 million, or roughly USD 50.8 million, announced in a press release. The agreement was signed in Taipei on May 25, 2026, marking TECO’s expansion into Southeast Asia’s AI data center infrastructure and modular data center markets.

Dynaciate will act as TECO’s global manufacturing hub for modular data centers and power equipment, and as an engineering base supporting projects across Southeast Asia. The company’s facility in Johor Bahru spans about 36,000 square meters, with eight production buildings for steel fabrication and eligibility for export tax incentives.

According to TECO, the integration will increase production efficiency and reduce data center delivery times to as little as six months. The company expects 65 percent of future data center revenue to come from modular and prefabricated products, while 35 percent will come from AI data center engineering. Data center-related revenue within TECO’s Power and Energy Business Group is projected to rise from below 10 percent to 30 percent this year.

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