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TECO
acquires Malaysia's NCL Energy to enter Southeast Asia's data center electrical
and mechanical engineering market (6th from left TECO Chairman Morris Li, 5th from left NCL founder Dato' Ng Keng Hiong)
TECO Chairman Morris
Li stated that Malaysia has introduced a series of power infrastructure and
renewable energy policies. With its low electricity costs, vast land availability,
and strategic location near Singapore, Malaysia has attracted significant
investment in data center construction, making it the country with the highest
number of new data centers in Southeast Asia. This acquisition aligns with
TECO's strategy of focusing on the Southeast Asian market and demonstrates its
long-term commitment to the Malaysian market.
On March
14, TECO's board of directors approved the acquisition and investment
of 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 completed in Q2 2025. TECO's Intelligence Energy Business Group
has extensive experience in building data centers for international cloud
computing giants in Taiwan and Singapore. Chairman Li highlighted that NCL has
been a long-term strategic partner of Malaysia's electricity company, Tenaga
Nasional Berhad (TNB). With NCL's experienced team and past achievements, TECO
will be able to quickly obtain the necessary MEP engineering licenses and
workforce for the Malaysian market. Furthermore, this acquisition will allow
TECO to seamlessly connect with major Malaysian EPC contractors such as Gamuda
and Sunway, enabling it to provide comprehensive MEP engineering services for
international cloud computing clients in Malaysia.
NCL founder Dato' Ng
Keng Hiong expressed his honor in joining the TECO Group. NCL has been engaged
in MEP and solar engineering in Malaysia for nearly 20 years. Recently, it
successfully collaborated with TECO on two hyperscale data center projects,
establishing a strong working relationship. This investment signifies TECO's
recognition of NCL's management team. With greater capital and resources, NCL
aims to expand its team and compete for more large-scale data center, solar
power plant, and MEP engineering projects.
Malaysia has attracted
strategic investments from global tech giants such as Google, Microsoft, Amazon
Web Services, and Oracle. Over the next five years, the country is expected to
receive more than $20 billion in foreign investment for data center
construction, solidifying its position as Southeast Asia's data center hub.
Chairman Li emphasized that entering Malaysia's data center MEP engineering
market is just the first step. TECO plans to expand into solar power plant,
battery energy storage system (BESS), EV charging and MEP equipment sales
to seize market opportunities. This aligns with TECO's strategy of increasing
overseas revenue to more than 50% within the next two to three years by
targeting Southeast Asia's high-growth potential markets. Through this
initiative, TECO aims to fulfill its vision in realizing electrification,
intelligence, and green energy.