TECO Acquires Malaysian Engineering Firm Dynaciate to Boost AI Modular Data Center Capabilities

TECO Electric & Machinery Co., Ltd. (TECO), a major electrical machinery manufacturer, announced today that its board of directors has approved the acquisition of Malaysian engineering company Dynaciate Engineering Sdn. Bhd. The company plans to invest approximately 200 million Malaysian Ringgit (about 1.6 billion New Taiwan Dollars) and aims to complete the transaction by August of this year.

Following the completion of the acquisition, TECO will hold absolute controlling interest in Dynaciate, with revenues and profits expected to be recognized starting in the second half of the year.

TECO stated in a press release that this move is a crucial strategy to accelerate the group's transformation into an "AI data center solution provider." It will further expand TECO's order-taking capacity for modular data center engineering projects and scale up its data center infrastructure business in Southeast Asia.

TECO announced in the evening that the board of directors resolved to acquire approximately 17.803588 million shares of Dynaciate, not exceeding 201.56264 million Malaysian Ringgit, at a transaction price of 11.32 Malaysian Ringgit per unit. The expected shareholding ratio will not exceed 77.9%.

TECO explained that Dynaciate was established in 2002 and is headquartered in Johor Bahru, Malaysia. It primarily provides Engineering & Construction, Fabrication, and Maintenance & Renovation services, and owns manufacturing facilities. The company has a long-term focus on piping and steel structure prefabrication. Starting from 2025, Dynaciate has begun undertaking data center engineering projects for international Cloud Service Provider (CSP) clients.

TECO stated that in response to the structural reshaping driven by the Artificial Intelligence (AI) industry, TECO has upgraded from an electrical machinery equipment manufacturer to a module and system integrator. The newly acquired Dynaciate possesses large manufacturing plants and high-barrier piping and steel structure prefabrication technologies, which will help TECO promote the mass production and order-taking of modular data centers, as well as expand the undertaking of data center projects for CSP clients.

Furthermore, Dynaciate's multinational technical workforce can enhance flexibility in cross-border project execution and personnel deployment, expanding engineering services in the Southeast Asian region and further meeting the global deployment needs of international CSP clients.