Taiwan-based TECO Electric & Machinery will acquire a majority stake in Malaysian engineering firm Dynaciate, in a deal worth MYR200 million ($50.8 million), as part of its expansion into Southeast Asia’s AI data center infrastructure market.
In a statement on Monday, TECO said the transaction is expected to close before the end of August. Upon completion, TECO will hold about 78 percent of Dynaciate. Dynaciate will serve as a manufacturing hub for modular data centers and an engineering center supporting the company’s expansion in Southeast Asia, particularly in data center infrastructure projects, TECO highlighted.
TECO Chairman Morris Li said Dynaciate’s expertise in modular prefabrication would strengthen TECO’s capabilities in modular data center construction and help shorten project delivery timelines.
Dynaciate CEO Ng Kim Thiea said Dynaciate’s engineering and prefabrication capabilities complement TECO’s expertise in electromechanical integration and energy systems for data center infrastructure.
Dynaciate, headquartered in Johor Bahru, Malaysia, operates manufacturing facilities in the Pasir Gudang Industrial Area. The site includes eight production buildings focused on stainless steel and carbon steel fabrication. The company employs 265 staff, including more than 200 engineers and project management personnel.
TECO said the acquisition builds on its earlier purchase of Malaysia-based NCL Energy in 2025, which expanded its electromechanical and telecommunications engineering operations in Southeast Asia. The Taiwan company expects Dynaciate and NCL Energy would jointly form a regional engineering platform supporting expansion into Thailand, Indonesia, the Philippines, and other Southeast Asian markets.
TECO also said it expects modular data centers and prefabricated products to account for around 65% of its future data center-related revenue, with the remaining 35% coming from AI data center engineering projects.