Photo: model of the Teco modular data center infrastructure
TECO Electric & Machinery Co. has secured a $79 million Data Center Contract in Southeast Asia after winning hyperscale projects in Malaysia and Thailand for a U.S.-based cloud service provider. The awards cover power system integration and large-scale fiber-optic infrastructure, further expanding TECO’s regional data center footprint.
According to the company, the contracts were awarded as demand for cloud and AI infrastructure continues to rise across the region. As a result, Southeast Asia has emerged as a priority market for hyperscale investment.
Hyperscale Projects Awarded in Malaysia and Thailand
The newly awarded projects are located in established data center hubs in both countries. In Malaysia, TECO will deliver the full electrical package, including power system integration, engineering design, and project management. The facility is scheduled for completion in April 2027.
Meanwhile, in Thailand, TECO will build the hyperscale fiber-optic telecommunications system. The scope includes backbone fiber infrastructure designed to support high-volume data transmission and advanced computing workloads. Completion is expected in December 2026.
Notably, the Thailand award marks TECO’s first data center contract in the country. The project was secured after competing against international firms, signaling a significant expansion milestone.
Regional Execution Gains Recognition
TECO Chairman Morris Li said the two contracts reflect growing recognition of the company’s engineering integration and execution capabilities in Southeast Asia. As global AI and cloud demand accelerates, he noted that reliable and flexible delivery has become a key differentiator.
Looking ahead, TECO plans to continue offering integrated, one-stop data center solutions. These capabilities are expected to support hyperscale customers as new capacity is brought online across Asia-Pacific markets.
Southeast Asia Strategy Builds Momentum
In 2025, TECO secured two additional data center-related engineering contracts in Malaysia. Those projects represented a combined installed capacity of 178 megawatts and a total value of nearly MYR 170 million.
Together with the newly announced awards, the contracts highlight steady order growth in the region. Consequently, TECO expects its Southeast Asia data center order intake to rise further in 2026.
At the same time, the company continues its transition toward becoming a broader AI data center solutions provider. This strategy is designed to deepen participation in the cloud and AI computing supply chain while supporting overall operational growth.
Integrating Power, Networks, and Green Energy
TECO said its Power and Energy Business Group will remain focused on core markets including Malaysia, Thailand, and Taiwan. In parallel, cross-group collaboration is being expanded to integrate renewable energy and energy service offerings.
By aligning data center infrastructure with green energy solutions, TECO aims to support customers seeking energy-efficient and sustainable computing platforms. Over time, these integrated models are expected to be extended to additional overseas markets.
As global cloud providers accelerate infrastructure deployment, TECO’s expanding role in power systems, fiber networks, and energy integration positions the company to capture further data center opportunities across Southeast Asia.
