TECO Aims for 50% Revenue Share from AI Data Centers; M&A Remains on the Table

TECO Electric & Machinery Chairman Li Ming-hsien stated today that the company is actively deploying AI data center (AIDC) applications in Taiwan and Southeast Asia while continuing to develop the North American market. He estimates that by the end of this year, AIDC revenue will account for over 30% of TECO's power energy business group, with a long-term goal of reaching 50%. Following the company's annual general meeting, Li addressed potential M&A plans, stating that the company remains open to acquisitions to foster new business development and technology acquisition. TECO recently signed a contract with Malaysian engineering firm Dynaciate to enhance its modular data center capabilities. Regarding North America, Li noted that while investment has cooled in the short term, he expects a rebound in AI data center investment after the third quarter. TECO also expects its gross margin to recover in the second half of the year through comprehensive solutions.