TECO Electric & Machinery Co. announced it has signed an acquisition agreement with Malaysian engineering company Dynaciate Engineering Sdn. Bhd., marking a major step in the company’s expansion into Southeast Asia’s AI data center infrastructure and modular data center markets.
The agreement was finalized during a signing ceremony held on May 25. Under the transaction, TECO will invest approximately MYR 200 million, or about $50.8 million, to acquire approximately 78% of the equity in Dynaciate.
TECO said Dynaciate will become the company’s global manufacturing hub for modular data center and power equipment products. The company will also serve as an engineering hub supporting TECO’s expansion across Southeast Asia, particularly for data center infrastructure projects.
According to TECO, the integration is expected to strengthen the company’s modular prefabrication capabilities and improve execution efficiency. The company added that the collaboration has reduced data center delivery timelines to as little as six months, creating an advantage for rapid deployment and commercialization.
TECO Chairman Morris Li said the acquisition significantly enhances the company’s in-house manufacturing ratio and execution capabilities for modular prefabrication projects.
Dynaciate CEO Ng Kim Thiea said the partnership represents a new phase of growth for the company. He noted that Dynaciate has experience in engineering, steel fabrication, and large-scale industrial projects for multinational corporations. Since 2025, the company has also expanded into the data center engineering market by undertaking projects for international cloud service provider clients.
Dynaciate’s headquarters and manufacturing facilities are located in the Pasir Gudang Industrial Area of Johor Bahru, Malaysia. The site covers approximately 36,000 square meters and includes eight production buildings dedicated to stainless steel and carbon steel fabrication. TECO said the facility is also eligible for export tax incentives that could support future global supply chain deployment.
TECO estimates that following the acquisition, approximately 65% of future data center-related revenue will come from modular data centers and prefabricated products, while 35% will come from AI data center engineering projects. The company expects data center-related revenue within its Power & Energy Business Group to increase from under 10% to 30% this year, positioning the segment as a major growth driver.
KEY QUOTES:
“Through the deep integration of both companies, TECO has significantly enhanced the execution efficiency and overall in-house manufacturing ratio of its modular prefabrication capabilities. In particular, the collaboration has successfully reduced data center delivery timelines to as little as six months, providing a distinct advantage in rapid deployment and accelerating the commercialization of data centers.”
Morris Li, Chairman, TECO Electric & Machinery Co.
“Dynaciate is honored to partner with TECO and enter a new phase of growth together. Dynaciate has extensive experience in engineering, steel fabrication, and large-scale industrial projects for multinational corporations, and since 2025 has actively expanded into the data center engineering market by undertaking projects for international CSP clients.”
Ng Kim Thiea, CEO, Dynaciate Engineering Sdn. Bhd.
