Deep Tech

What the Hesai–Keeta Drone Partnership Reveals About Scaling Urban Drone Delivery

Sensing technology is facilitating the transition of drone delivery services from trial phases to regular daily operations.

Updated

January 23, 2026 10:41 AM

A quadcopter drone with package attached. PHOTO: FREEPIK

A new partnership between Hesai Technology, a LiDAR solutions company and Keeta Drone, an urban delivery platform under Meituan, offers a glimpse into how drone delivery is moving from experimentation to real-world scale.

Under the collaboration, Hesai will supply solid-state LiDAR sensors for Keeta’s next-generation delivery drones. The goal is to make everyday drone deliveries more reliable as they move from trials to routine operations. Keeta Drone operates in a challenging space—low-altitude urban airspace. Its drones deliver food, medicine and emergency supplies across cities such as Beijing, Shanghai, Hong Kong and Dubai. With more than 740,000 deliveries completed across 65 routes, the company has discontinued testing the concept. It is scaling it. For that scale to work, drones must be able to navigate crowded environments filled with buildings, trees, power lines and unpredictable conditions. This is where Hesai’s technology comes in.

Hesai’s solid-state LiDAR is integrated into Keeta's latest long-range delivery drones. LiDAR stands for Light Detection and Ranging. In simple terms, it is a sensing technology that helps machines understand their surroundings by sending out laser pulses and measuring how they bounce back. Unlike GPS, LiDAR does not rely solely on satellites to determine position. Instead, it gives drones a direct sense of their surroundings, helping them spot small but critical obstacles like wires or tree branches.

In a recent demonstration, Keeta Drone completed a nighttime flight using LiDAR-based navigation alone without relying on cameras or satellite positioning. This shows how the technology can support stable operations even when visibility is poor or GPS signals are limited.

The LiDAR system used in these drones is Hesai’s second-generation solid-state model known as FTX. Compared with earlier versions, the sensor offers higher resolution while being smaller and lighter—important considerations for airborne systems where weight and space are limited. The updated design also reduces integration complexity, making it easier to incorporate into commercial drone platforms. Large-scale production of the sensor is expected to begin in 2026.

From Hesai’s perspective, delivery drones are one of several forms robots are expected to take in the coming decades. Industry forecasts suggest robots will increasingly appear in many roles from industrial systems to service applications, with drones becoming a familiar part of urban infrastructure rather than a novelty.

For Keeta Drone, this improves safety and reliability. And for the broader industry, it signals that drone logistics is entering a more mature phase—one defined less by experimentation and more by dependable execution. Taken together, the partnership highlights a practical evolution in drone delivery.

As cities grow more complex, the question is no longer whether drones can fly but whether they can do so reliably, safely and at scale. At its core, this partnership is not about drones or sensors as products. It is about what it takes to make a complex system work quietly in real cities. As drone delivery moves out of pilot zones and into everyday use, reliability matters more than novelty.

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Operations & Scale

TECO Acquires Malaysian Engineering Firm to Expand Modular AI Data Center Business

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.