AI-driven demand for computing has pushed power infrastructure to the forefront of industry competition. The International Energy Agency (IEA) predicts that global electricity demand will grow by an average of 3.6% per year from 2026 to 2030, with data centers accounting for about half of the increase in electricity demand in the United States. From power supply and distribution to cooling and engineering, the energy and electromechanical capabilities that support AI infrastructure are drawing increasing attention.

Taiwan has already secured a prominent position in the global AI supply chain thanks to its strengths in semiconductors and servers. However, the next phase will put a different set of capabilities to the test: power systems, electromechanical engineering, energy engineering, and local services. This shift is the key driver behind Team Taiwan’s expansion beyond the “hardware supply chain” into “global energy and engineering solutions.”

Decades of manufacturing expertise remain a crucial foundation for Taiwan, but the challenges facing global customers now extend far beyond individual products. A company's ability to integrate technology, engineering, supply chain, and global services into complete solution will shape Taiwan's position in the next wave of AI, electrification, and energy markets.

TECO, with its 70-year history, is a benchmark company in the industry. Founded as a  manufacturer of motors and electromechanical equipment, it has been a key player in Taiwan's industrialization. Over the decades, its capabilities have expanded into power systems, drive systems, engineering, energy management, and global services. As AI data centers require reliable power and cooling, manufacturers pursue energy conservation and electrification, and multinational customers demand solutions to be delivered and supported locally, these capabilities have become crucial in supporting Team Taiwan's international expansion. The next challenge is to Integrate them into complete solutions that customers can directly adopt.

After becoming TECO Chairman in 2024, Morris Li sought answers from the market. During his first year, he personally led senior executives on visits to customers across the steel, petrochemical, semiconductor, electronics, and AI data center sectors. "If people still think of TECO as just a motor company, then transformation will never happen," he said.

A motor company moves beyond motors

TECO got its start during the initial phase of Taiwan's industrialization. Its induction motors, electromechanical equipment, and factory power systems have long supported the development of the manufacturing industry, while enabling the company itself to build capabilities in power systems, drive systems, engineering, and energy management. Li observes that the challenges faced by global customers today are more complex today. "Equipment procurement is one example," he said, "because it requires consideration of energy efficiency, power reliability, electrification, carbon reduction, and maintenance overhead."

To meet customer needs, TECO has been extending its capabilities well beyond its traditional businesses. Its current businesses includes industrial electrification, commercial EV powertrains, charging equipment, and EV vessel powertrains, while its green energy businesses extends to ESCO services, smart grids, energy storage, offshore wind power, hydrogen energy, and virtual power plants. Despite this diverse range of capabilities, TECO's development direction is consistent: integrating products, technologies, engineering, and services into solutions that can be fulfilled locally for customers.

TECO is also enhancing its capabilities through acquisitions and strategic investments to fill the gaps. In recent years, these have included EVK e-Motor Technology, to bolster its flat wire motor technology; Shen Chang Electric, to expand its transformer product line; Malaysia's NCL Energy, to round out its electromechanical engineering expertise; and Dynaciate Engineering, to strengthen its prefabrication and modular construction know-how. Li's thinking is clear: first identify what customers will need in the future, then ensure that TECO has the ability to meet those needs.

As TECO marks its 70th anniversary,  "Move to Lead" reflects the key direction of its next stage of transformation. By combining technology integration, local service, and global fulfillment capabilities, the company aims to leverage its existing manufacturing and engineering fundamentals to strengthen its overall competitiveness in the global energy and electrification markets.

"One TECO" breaks down walls between business units

To sell complete solutions, TECO must be able to operate collaboratively across the organization.

Among Li's first tasks as chairman was addressing organizational issues. TECO's different business divisions, regional branches, and subsidiaries had previously each maintained their own products and customers. However, new customers' needs often involve multiple technologies and services—something the company's existing internal division of labor was insufficient to fully address.

Li therefore promoted the "One TECO" concept, which empowers, for example, once largely independent units dedicated to electromechanical engineering, power systems, air conditioning, and automation to operate collaboratively for a single customer. "One TECO" emphasizes customer-centricity, cross-domain collaboration, open communication, and the pursuit of growth, encouraging different units to transcend existing organizational boundaries.

"One TECO" was never simply a talking point for the meeting room. Li demonstrated the urgency of making it a reality by leading his executive team on visits to key customers. When everyone saw how these customers' needs simultaneously encompassed power systems, air conditioning, energy management, and engineering integration, it was clear that no single business unit could provide a comprehensive solution. 

These visits also helped TECO's teams see that new business opportunities often depend on whether different capabilities can be brought together. "When employees saw the chairman personally leading the team, engaging with customers at levels they had not previously reached, and saw new business opportunities actually emerge, they began to believe that the transformation was more than just a slogan." 

With the "One TECO" strategy, TECO Chairman Morris Li broke down barriers between business units, advocating a move away from the mindset of selling individual products—a legacy of the days when TECO manufactured only motors. He pushed the company to work backward from market demand, integrating capabilities to develop coherent solutions and lead TECO into a new era.

AI Data Centers become a trial by fire for "One TECO"

The burgeoning market driven by AI data center buildouts quickly became a concrete opportunity to validate the "One TECO" approach.

TECO has been involved in data center projects for over 20 years, mostly as an electromechanical engineering contractor. With the rapid development of generative AI, data centers are gravitating toward high-density computing, bringing more demanding requirements for power supply and distribution, heat dissipation, and system integration, while the turnaround times that must be met have shrunk. Li is optimistic that AI infrastructure will be a significant growth market for TECO over the next decade, and has therefore moved to set up a dedicated data center business unit, bringing global engineering, equipment, supply chain, and technology resources under a unified structure.Project solutions for data centers run by technology multinationals and large cloud service providers often span the globe and require the involvement of multiple business units. By demanding synchronous collaboration across different regions and functional teams in service of a single customer, these projects are a perfect proving ground for "One TECO."

To date, TECO's solutions have been deployed in data centers totaling nearly 1 GW of capacity worldwide, integrating capabilities in electromechanical engineering, prefabrication, modular construction, and equipment supply. A new power busbar production facility in Penang, Malaysia is one example of how TECO is building out a comprehensive fulfillment system to support multinational data center projects.

Taiwan's AI supply chain already holds advantages in semiconductors, servers, and system assembly. TECO, meanwhile, is focused on the power systems and electromechanical infrastructure for data centers—because for Team Taiwan to fully realize its potential in the global AI market, the ability to provide stable power supply and distribution, facility engineering, and follow-up maintenance is equally indispensable.

Starting from Taiwan, delivering solutions to the world

The current state of the global economy highlights another challenge: once a project spans multiple countries, companies must not only have the necessary technical capabilities—they must also be able to deliver products and provide services to the customer as seamlessly as local vendors would.

Large multinational customers are now especially concerned with delivery time, supply chain resilience, localized support, and after-sales maintenance. TECO has therefore established five regional operations platforms—for the Americas, China, Southeast Asia, Europe, and Australia/New Zealand—with R&D, core technologies, key manufacturing, and global resource integration continuing to be handled in Taiwan.

TECO-Westinghouse supports the Americas region, while TECO's Southeast Asia platform is anchored by its Vietnam base, which addresses supply chain diversification and local production needs. TECO’s operation in India focuses on production, domestic demand growth, and electrification opportunities. Both the Europe and Australia/New Zealand platforms strengthen local service and market support capabilities.

Li's global strategy is centered on Taiwan's technology and management experience, with operations located close to customers to support regional production, local sales, and international collaboration. TECO's technology, engineering support, service, and management capabilities have allowed it to expand operations into the markets where its customers are, providing Team Taiwan with a practical model for a globalized business.

Turning energy-saving tech into long-term services

Energy services are another growth area for TECO, closely linked to its core business.

In the past, TECO primarily helped customers reduce electricity consumption through high-efficiency motors and inverters. Now, it pursues this goal with a much broader approach that includes whole-plant energy diagnostics, equipment optimization, and system integration. Li has pointed out that improvements to a single piece of equipment can save 5% to 10% in energy, but if reductions in power consumption are pursued system-wide using a holistic approach, companies in some industries may achieve savings of over 40%.TECO's role with its customers has also expanded—from simple order fulfillment to long-term energy management. It engages with customers to help implement energy efficiency measures, optimize equipment operation, and achieve carbon reduction goals. Years of accumulated experience in motors, electromechanical systems, and energy management now form the basis for these ongoing services.

The same logic applies to TECO's own operations. In 2020, the company set a goal of reducing carbon emissions by 50% by 2030, and it has already achieved reduction of 45.4%. TECO's worldwide installed solar power capacity exceeded 17 MW in 2025, and the company has also set an internal carbon price of NT$1,600 per ton, factoring carbon costs into managers' performance metrics and the company's investment decisions.

Li believes that sustainability must be genuinely integrated into business operations to create lasting business value. TECO's many years of experience with energy-saving technologies and electromechanical engineering are now being integrated into energy services that customers are willing to adopt long-term.

What will Team Taiwan deliver in the next 70 years?

Global energy services and AI infrastructure solutions have become TECO's clear development directions. These two paths target different markets, but both require capabilities in power systems, electromechanical engineering, energy management, localized fulfillment, and long-term service.

After 70 years of history, TECO still manufactures motors and continues to undertake electromechanical engineering projects. What has changed is that a single order now often includes power systems, cooling equipment, engineering services, energy management, local fulfillment, and long-term service. Capabilities once dispersed across different business units and regional operations must now be integrated to deliver unified solutions.

TECO thus offers Team Taiwan a new way of thinking. Taiwan has already proven its ability to manufacture the products the world needs. The next stage of development demands an affirmative answer to the question: Can it combine its technology, manufacturing prowess, engineering services, supply chain, and service capabilities into comprehensive solutions that global customers are willing to adopt long-term?

For its next 70 years, TECO aims to draw on Taiwan's decades of accumulated power systems and engineering capabilities to serve the global AI, electrification, and energy sectors. In doing so, it will be a crucial driver of Team Taiwan's efforts to expand its global impact.

Q1: How did TECO transform from a traditional motor manufacturer into a global AI and energy solutions giant as it marks its 70th anniversary?

To meet the demands of the AI data center and renewable energy markets, Chairman Morris Li has promoted the "One TECO" strategy, breaking down barriers between business units and integrating capabilities in electromechanical engineering, power systems, cooling equipment, engineering services, and energy management. Working through six regional operations platforms around the world, TECO has provided solutions for data centers with a total capacity approaching 1 GW, bolstering Team Taiwan's traditional manufacturing strength as it moves forward on the international stage.

Q2: How does the "One TECO" strategy enable one-stop solutions for AI data centers and companies in general?

"One TECO" is central to TECO's transformation as it begins its eighth decade. Focused on customer needs, it dismantles the barriers separating business units, integrating previously fragmented capabilities in power systems, air conditioning, automation, and other areas. For high compute-density AI data centers, TECO has established a dedicated data center business unit to provide one-stop solutions combining power supply and distribution, prefabricated modular construction, and maintenance. For mainstream companies, TECO has extended traditional equipment sales to include long-term energy diagnostics and carbon reduction services, helping them achieve their sustainability objectives.