东元电机RHVAC展宣示空调事业转型AI数据中心散热，DigiTimes详报但无新增订单

TECO Electric and Machinery showcased its transformation from an air-conditioning equipment maker to a systems integrator at the 2026 RHVAC Taiwan on October 20, focusing on AI data center thermal management and refrigerants with low global warming potential (GWP). The company expects commercial air conditioning and AI data center cooling solutions to account for more than 60% of its air conditioning technology business group's revenue in 2027.

TECO's air-conditioning business was previously centered on residential air conditioning. Shang-yu Tsai, general manager of the company's air conditioning technology business group, said residential and commercial air conditioning historically accounted for about 60% and 40% of revenue, respectively, with the ratio at one point reaching 70% to 30%.
In 2026, orders for large factories and office facilities, as well as energy-efficiency upgrades from major Taiwanese customers, increased. As a result, the combined share of commercial air conditioning and AI data center cooling solutions is expected to reach roughly 50%, matching residential air conditioning.
In 2027, as data center demand expands, commercial air conditioning and AI data center-related business are expected to exceed 60% of the group's revenue, while residential air conditioning is projected to remain at around 40%.
Tsai emphasized that residential air conditioning remains a core product in Taiwan. The group is simply directing more resources toward thermal management, with its focus now concentrated on data centers and AI infrastructure. Business opportunities expanded significantly in 2026, generating positive order momentum.
TECO general manager Fei-yuan Kao said rapidly growing demand for AI computing has made cooling and thermal management an essential part of AI infrastructure. In line with the group's transformation, the air-conditioning business is shifting from a traditional equipment supplier toward high-efficiency cooling systems and integrated solutions.
TECO is actively developing the AI data center market, aiming to introduce cooling equipment and systems integration solutions into AI infrastructure projects operated by international cloud service providers (CSPs). It also plans to use its thousand-ton-class environmentally friendly water chillers to expand in global high-tech manufacturing.
On its business model, Kao said the group will build a complete supply chain spanning products, solutions, services, and outcome delivery, while supporting the group's new energy service company (ESCO) model. This business is also the fastest-growing unit within the air conditioning technology business group in 2026.
New products target AI data center cooling
On the product front, TECO introduced an Integrated Dual Cooling Series Water Chiller/Heat Pump. The system integrates the water chiller, water system, power distribution, and centralized controls into a standard enclosure. After factory prefabrication and complete-system testing, it can begin operating after only on-site water and electrical connections, eliminating the need to build a conventional air-conditioning plant room and saving 30% to 50% in floor space.
Chin-shu Liu, head of TECO's data center division, said AI server power density continues to rise, requiring cooling systems to be planned in parallel with power and IT equipment. Modular designs can shorten deployment times and allow flexible expansion based on computing requirements.
Another product, the AIDC Free Cooling Magnetic Bearing Air-Cooled Chiller, combines magnetic-levitation compressors with electronically commutated (EC) fans and supports free cooling. It can operate in extreme climates without requiring cooling towers or cooling-water systems.
The modular thermal-management solution All in One Cooling POD moves systems integration and on-site installation work into the factory. Tsai said the advance preparation can shorten the overall project schedule by about 50%.
For components, TECO is leveraging its motor business to enter the coolant distribution unit (CDU) pump market. Kao said the company has applied flat-wire motor technology developed for EVs to CDU pumps. Compared with conventional induction motors, the 37kW, or approximately 50-horsepower, model reduces volume by about 50% and weight by about 60%, while raising efficiency from IE3 to above IE4.
Traditional refrigeration and air-conditioning systems occupy the "gray area" of a data center, while CDUs are closer to the "white area," creating an interface between the two, Kao said. TECO aims to use its CDU offering to provide an end-to-end integrated solution.
For environmentally friendly refrigerants and energy-efficient controls, TECO's low-GWP products include commercial packaged air conditioners using R454B refrigerant and water chillers using R1234ze and R513A. The company has also developed the design and manufacturing capabilities for environmentally friendly water chillers rated at more than 1,000 tons, which can serve high-tech facilities such as semiconductor plants.
Its low-carbon air-suspension chiller series uses 100% oil-free air-suspension bearings. The Smart Box intelligent energy-efficiency diagnostic system combines AI cooling-load forecasting with dynamic optimization controls. TECO said the system can reduce energy costs by about 10% and supports equipment from multiple brands.
Tsai added that energy savings at the individual-unit level can reach 20% to 30% or more, while further system-level optimization can deliver an additional reduction of more than 10%.
TECO said it has delivered more than 100,000 refrigeration tons (RT) of water chillers to major global PCB manufacturers over the past two years and supplied more than 30,000RT of equipment to a leading global electronics manufacturing services (EMS) provider.
Kao said orders for large, thousand-ton-class water chillers mainly come from overseas. Customers include high-tech companies building facilities abroad, as well as companies developing new plants in Taiwan.
Global expansion plans and upcoming Malaysia site
Tsai said TECO's supply-chain resilience plans will center on Taiwan, with Southeast Asia—Malaysia, Thailand, and Vietnam—as a supporting base. Malaysia will serve as the regional hub, as TECO has acquired a local company related to data centers.
The company's target markets include Northeast Asia, Southeast Asia, the US, North America and Australia, with the US and Japan receiving priority in its next phase of planning.
Tsai said demand from Taiwanese companies building facilities overseas has surged, while delivery times across the air-conditioning industry have generally lengthened. In addition to its products, TECO's competitive delivery times have become a key factor in winning customer trust, supporting its expectations for further AI data center-related orders.
A proof-of-concept (PoC) site in Malaysia is also expected to be announced soon.