The US$50.8 million deal strengthens TECO’s push into modular infrastructure and faster data center deployment across Southeast Asia.
Updated
May 26, 2026 5:39 PM
Kuala Lumpur, Malaysia. PHOTO: UNSPLASH
TECO Electric & Machinery is expanding further into Southeast Asia’s AI data center infrastructure market through a new acquisition in Malaysia.
The Taiwan-based company has signed an agreement to acquire approximately 78 percent of Malaysian engineering firm Dynaciate Engineering in a deal valued at around MYR 200 million (US$50.8 million). According to TECO, the acquisition is aimed at strengthening its modular data center manufacturing capabilities and supporting its expansion across Southeast Asia’s data center infrastructure sector.
Under the agreement, Dynaciate will become TECO’s global manufacturing hub for modular data center and power equipment products. The company will also serve as an engineering hub supporting TECO’s regional expansion efforts, particularly in AI data center infrastructure projects.
TECO Chairman Morris Li said the integration between both companies has improved execution efficiency and increased the company’s in-house modular prefabrication capabilities. According to the company, the collaboration has reduced data center delivery timelines to as little as six months.
Dynaciate is headquartered in Johor Bahru, Malaysia. Its facilities span approximately 36,000 square meters and include eight production buildings focused on stainless steel and carbon steel fabrication. The company said the site is also eligible for export tax incentives that support future global supply chain deployment.
According to TECO, Dynaciate has experience in engineering, steel fabrication and large-scale industrial projects for multinational corporations. The company added that Dynaciate has expanded into the data center engineering market since 2025 through projects involving international cloud service provider clients.
TECO estimates that after the acquisition, around 65 percent of future data center-related revenue will come from modular data centers and prefabricated products, while the remaining 35 percent will come from AI data center engineering projects. The company also forecasts that data center-related revenue within its Power & Energy Business Group will rise from below 10 percent to 30 percent this year.
Dynaciate CEO Ng Kim Thiea said the company is entering a new phase of growth through the partnership with TECO. He added that Dynaciate has extensive experience supporting engineering and industrial projects across the region.
The acquisition marks a further expansion of TECO’s presence in the AI data center infrastructure sector as companies continue increasing investments in modular infrastructure and regional engineering capacity.
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The 5th RCEP (Shandong) Import Commodities Expo opened this week at the Linyi International Expo Center, bringing together more than 5,300 buyers and over 400 exhibitors from 48 countries. Alongside the scale of the event, a quieter shift was visible in how trade itself is being organised.
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The platform operates as a structured network of verified manufacturers, grouped by industrial clusters. Instead of buyers searching supplier by supplier, the system uses data and AI tools to match demand with production capacity. At the expo, this process was made visible through real-time data screens and guided sourcing sessions, where procurement teams connected directly with factories across categories such as building materials, textiles and electronics.
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The underlying problem being addressed is not new. Cross-border sourcing is often slow, fragmented and dependent on intermediaries. What is changing is how that process is being compressed. By combining supplier verification, demand matching and communication into a single system, platforms like ChinaMarket aim to shorten sourcing cycles. They also reduce uncertainty in procurement decisions.
Financing is another layer where the model is evolving. Even when suppliers and buyers are matched efficiently, access to capital can still slow transactions down. Small and medium-sized firms often face constraints around payment terms and access to credit in international trade.
ChinaMarket’s “data + order financing” model links transaction data with financial services, allowing funding decisions to be tied more directly to verified orders rather than external collateral. In practice, this shifts part of the risk assessment from institutions to platform-level data.
The company is also extending this structure into agricultural supply chains. At the expo, it signed an agreement with a local government in Yinan County to build a digitally managed agricultural belt. The model combines sourcing at origin with platform distribution, with an emphasis on traceability for buyers across RCEP markets. This reflects a broader attempt to standardise supply visibility in sectors that are typically less digitised.
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