東元電機參展能源臺灣闡述AI數據中心電力佈局：儲能、綠電PPA、變壓器與模組化數據中心多為規劃/預期，無新增實質合約

TECO Electric and Machinery participated in Energy Taiwan on October 14, showcasing its smart microgrid solutions and outlining the future development of its power and energy business group.

TECO president Fei-yuan Kao said that as AI data centers and advanced manufacturing expand rapidly, businesses are increasingly concerned not only about electricity costs, but also power availability, supply stability, and whether additional electricity can be secured in time for new loads.
TECO has spent the past 70 years building its business around motors. In recent years, it has transformed into an electromechanical systems integrator focused on power and energy, combining heavy electrical equipment, energy storage, self-generation, and energy management systems (EMS) to provide integrated solutions from power supply to consumption.
Taiwan-made behind-the-meter ESS
Energy storage is one of TECO's current priorities. Kao said the company's first domestically produced behind-the-meter energy storage system (ESS) was connected to the grid and began operating in late October. It has undergone testing for about a month and is performing well. The batteries are supplied by Taiwanese manufacturers, and TECO expects to take on additional large-scale behind-the-meter storage projects.
TECO developed its own power conversion system (PCS) as the core equipment and can provide solutions using Taiwan-made battery cells or cells manufactured outside of Taiwan, depending on customers' costs and budgets.
TECO expects behind-the-meter ESS to remain the main focus of Taiwan's market in 2026 and 2027. Customers in industries including textiles, paper, and steel have shown particularly strong interest, and the company plans to expand the business in collaboration with Taiwanese battery partners.
Demand for green power grows
In green power sales, TECO expects to complete a large corporate power purchase agreement with a semiconductor company in 2026. The agreement will involve more than 30 megawatts (MW) of green power wheeling capacity, with cumulative solar power supplied expected to exceed 300 million kilowatt-hours.
With demand for green power exceeding supply, TECO said the final scale will surpass the original 30 MW target. The company is actively seeking additional customers in central and southern Taiwan, helping them establish power generation sites before reselling the electricity on their behalf.
Malaysia, Australia next key markets
Overseas, TECO identified Malaysia as its next key market. In addition to targeting local AIDC applications, the company is working with NCL Energy, a Malaysian company it acquired, to expand the use of solar power and energy storage in AIDCs.
TECO said Malaysian government tenders total about 2 gigawatts (GW), while private-sector and data center-related demand exceeds 2 GW. Additional demand comes from power companies building ESS to strengthen grid stability and complement solar power.
TECO and its local partners have completed planning and tender preparations, with the relevant projects expected to be finalized in 2027.
In Australia, TECO is entering the market through an equipment, engineering, and investment model. Three sites are currently under construction, with the first expected to connect to the grid in the first quarter of 2027 and the other two potentially connecting as early as the second quarter.
Given the significant fluctuations in local electricity prices and price spreads in Australia, TECO is planning greater energy storage capacity than solar capacity. The company said it will continue to monitor market developments before deciding whether to expand further into energy services.
Focus on transformers
Transformers are another major focus of TECO's capacity expansion plans. The company is planning to build two new plants in Indonesia: one for dry-type and distribution transformers, and another for power transformers. The facilities will primarily target US orders while also supplying markets in Southeast Asia, Australia, and Taiwan.
David Kuo, president of TECO's power and energy business group, said the new dry-type and distribution transformer plant is expected to be completed as early as the second half of 2027, while the power transformer plant is scheduled for completion in 2028. The expansion will address strong demand from AIDCs and the oil and gas industry.
Kao pointed out that because dry-type transformers are clean, they are seeing strong overseas demand from data centers and electronics factories setting up facilities abroad. TECO has traditionally focused on power and distribution transformers and aims to quickly strengthen its dry-type transformer capabilities.
In Taiwan, TECO is also planning a new plant for distribution and dry-type transformers in Zhongli, which is scheduled for completion in the second quarter of 2027.
Expanding capacity to meet data center needs
TECO added that key long-lead-time components, including high-voltage bushings, mainly come from international suppliers. The limited number of global suppliers is one reason contributing to longer delivery times.
In Penang, Malaysia, TECO subsidiary Tecobar Technology began operating a new armored busway plant in April 2026 and is currently building a new plant for cast-resin busways. Around 80% of the products manufactured at Tecobar's Yangmei facility in Taiwan are exported to Southeast Asia. However, shipments from Taiwan have struggled to keep pace with demand, prompting the company to establish local production capacity to better meet customer needs.
Modular data centers central to TECO strategy
TECO also disclosed plans to expand its modular data center (MDC) capacity in Penang, as its existing facility in Johor Bahru, Malaysia, lacks sufficient capacity. The company previously expanded its opportunities in data center engineering through the acquisition of Malaysia-based Dynaciate Engineering.
MDCs are central to TECO's data center strategy. The company provides end-to-end solutions covering system design, manufacturing, installation, testing, and delivery, as well as subsequent operations. Orders from cloud service providers in Southeast Asia have doubled in 2026 compared with 2025.
Kuo said the results of a proof-of-concept (POC) MDC project in Malaysia, with a capacity of about 3 MW, are expected to be announced by the end of 2026. Another POC project of around 5 MW is also scheduled to be announced by year-end.
The outcome of a Japanese MDC project is expected to become clearer by the end of the year, while progress on large AIDC equipment orders is anticipated before the end of the year.
Kao said businesses will increasingly shift from being passive electricity consumers to active energy users capable of managing their own energy dispatch. TECO will continue expanding its energy integration business in Taiwan and overseas through smart microgrids and high-efficiency electromechanical systems.