TECO Expands into Southeast Asia’s Data Center Market with NCL Energy Acquisition

TECO Electric & Machinery Co. has announced the acquisition of an 80% stake in Malaysian MEP (mechanical, electrical, and plumbing) engineering firm NCL Energy Sdn Bhd, marking its entry into Malaysia’s growing data center and renewable energy sector. The acquisition was formalized at a signing ceremony in Kuala Lumpur, reinforcing TECO’s strategic focus on Southeast Asia.

Expansion into Malaysia’s Booming Data Center Market

TECO Chairman Morris Li stated that Malaysia has become a key investment destination for data center construction, driven by favorable renewable energy policies, low electricity costs, and its strategic location near Singapore. The country currently leads Southeast Asia in new data center projects.

On March 14, TECO’s board of directors approved the acquisition and investment in both NCL Energy Sdn Bhd and its renewable energy subsidiary, NCL Green Energy Sdn Bhd, for a total price not exceeding MYR 70 million. The transaction is expected to be finalized in the second quarter of 2025.

TECO’s Intelligence Energy Business Group has extensive experience in constructing data centers for global cloud computing companies in Taiwan and Singapore. Through the acquisition, TECO aims to leverage NCL’s existing licenses, workforce, and long-standing partnership with Malaysia’s national utility company, Tenaga Nasional Berhad (TNB). This will facilitate TECO’s rapid entry into the Malaysian market and strengthen its position in the region’s expanding data center infrastructure sector.

Strengthening Partnerships and Expanding Services

By acquiring NCL, TECO will also establish connections with major Malaysian EPC (engineering, procurement, and construction) contractors, including Gamuda and Sunway, allowing it to provide comprehensive MEP engineering services for international cloud computing companies operating in Malaysia.

NCL founder Dato’ Ng Keng Hiong welcomed the acquisition, emphasizing that NCL has nearly two decades of experience in Malaysia’s MEP and solar engineering industry. The company has recently collaborated with TECO on two hyperscale data center projects, demonstrating a strong working relationship. The additional capital from TECO will enable NCL to expand its workforce and compete for large-scale projects in data centers, solar power plants, and MEP engineering.

Malaysia’s Growing Role in Data Center Investments

Malaysia has become a key destination for global tech giants, with companies such as Google, Microsoft, Amazon Web Services, and Oracle investing heavily in data center infrastructure. Over the next five years, foreign investment in the country’s data center sector is expected to exceed $20 billion, solidifying Malaysia’s position as a data center hub in Southeast Asia.

TECO Chairman Li emphasized that entering Malaysia’s data center MEP engineering market is just the beginning of the company’s broader expansion strategy. TECO plans to extend its operations into solar power plants, battery energy storage systems (BESS), electric vehicle (EV) charging infrastructure, and MEP equipment sales. The company aims to increase its overseas revenue share to over 50% within the next two to three years by targeting high-growth markets in Southeast Asia.

Through this strategic acquisition, TECO seeks to strengthen its presence in electrification, intelligence, and green energy solutions, positioning itself as a leader in Southeast Asia’s evolving energy and infrastructure landscape.