TECO AI Data Center doubles orders, Indonesia will expand 2 transformer factories

TECO participated in the "2026 Taiwan International Smart Energy Week and Net Zero Sustainability Exhibition". The picture shows General Manager Gao Feiyuan. (Photo by reporter Ou Yuxiang)

[Reporter Ou Yuxiang/Taipei Report] Electromechanical giant TECO (1504) participated in the "2026 Taiwan International Smart Energy Week and Net Zero Sustainable Exhibition" to showcase its energy creation, energy storage and smart energy solutions. General Manager Gao Feiyuan said that TECO is tapping into the AI ​​data center energy storage business opportunity and targeting the Taiwan, Malaysia and Australian markets. This year’s order intake for MDC (modular data center) solutions has been several times that of last year. In order to support global demand, TECO will also expand two transformer factories in Indonesia.

With the theme of "Smart Microgrid, Creating Strong Power Supply" this year, TECO will exhibit energy solutions at the Smart Energy Week that integrate energy creation, energy storage, power transmission and distribution, and smart energy conservation. It uses smart energy management systems (EMS) to connect multiple power sources and high-efficiency power equipment in series to help enterprises improve energy efficiency, strengthen power supply resilience, and drive low-carbon operations.

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Gao Feiyuan said that with the rapid development of AI data centers, high-end manufacturing and enterprise AI applications, the issue of enterprise energy management has changed to "whether the power is sufficient, whether the power supply is stable, and whether new loads can obtain power in a timely manner." The first domestically produced off-meter energy storage system built by TECO is expected to be officially operational by the end of the month, and will build power-level, distribution-level and dry-type transformer production capacity in Indonesia.

Gao Feiyuan further explained that the localized energy storage system has been tested for a month and is in good condition. It is mainly targeting large users of behind-the-meter energy storage. The textile, steel and other industries are interested and will continue to develop customers in Taiwan. The next key overseas market is Malaysia to compete for energy storage needs for government projects and data centers.

TECO is also optimistic that the Malaysian government has actively promoted energy storage business opportunities in recent years, which is expected to bring business opportunities to its subsidiary NCL. The relevant project is expected to be finalized next year. Peng Wenjie, director of the Green Energy Business Department of TECO Electric Power Business Group, explained that TECO is using energy storage to tap into the AI ​​data center business opportunities in Malaysia. The government site size is 2GW, and the private site size exceeds 2GW. Three sites are under construction in Australia. One site will be connected to the grid in the first quarter of next year at the earliest, and two will be connected to the grid in the second quarter.

In terms of transformer production capacity, Gao Feiyuan also said that in order to support customer orders, TECO plans to add two factories in Indonesia. One factory will produce dry-type and distribution-grade transformers, and the other will produce power-grade transformers. Guo Minglun, general manager of TECO's power and energy business group, pointed out that the dry-type and distribution-grade transformer factories will be completed from September to the end of next year at the earliest, and the power-grade will be completed in 2028 to meet the needs of global markets such as North America.

In addition, in the AI ​​data center section, Gao Feiyuan explained that TECO's MDC (Modular Data Center) overall solution covers system planning, design, manufacturing, delivery and installation. The main customers are Southeast Asian CSPs (Cloud Service Providers). This year's order intake has been several times that of last year, and it continues to cultivate the Japanese market. Guo Minglun also said that at present, various electromechanical equipment continues to receive orders. The MDC POC case will be completed in Malaysia by the end of the year, and potential customers are expected to take orders by the end of the year.

The smart microgrid exhibited by TECO this time takes EMS as the core and integrates renewable energy sources such as mains electricity, solar energy and wind power, battery energy storage systems (BESS) and diesel generators. It performs intelligent dispatching based on real-time load, grid status and equipment operation conditions, and has grid-connected and islanded operation capabilities. When faced with peak power consumption, contracted capacity exceeding limits, fluctuations in renewable energy supply, or external power grid abnormalities, the system can instantly adjust the power supply configuration to maintain stable operation of key equipment.

This year TECO also completed a large-scale power purchase and sale agreement (CPPA) for semiconductor companies, with a green power transfer capacity of more than 30MW and a cumulative green power supply of more than 300 million kWh. In the future, we will continue to expand the energy integration market at home and abroad, and use smart microgrids and high-efficiency electromechanical systems to help companies build strong, low-carbon and competitive energy infrastructure. Because green power is in short supply, we are actively looking for other Taiwanese customers.

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