TECO Electric pivots to AI data center thermal management

TECO Electric & Machinery Co., Ltd. is undergoing a strategic transformation to focus on AI data center (AIDC) thermal management and large-scale commercial air conditioning. At the 2026 International Refrigeration and Air Conditioning Green Technology Exhibition, the company showcased several innovations, including modular cooling solutions like the ‘All in One Cooling POD’ and magnetic levitation air-cooled chillers designed for extreme climates.

To address the high power density of AI servers, TECO is moving from a traditional equipment manufacturer to a system integrator. Their new modular designs aim to reduce data center construction time and save 30% to 50% of floor space by integrating water systems, power distribution, and central controls into standard units. The company is also prioritizing decarbonization through the use of low Global Warming Potential (GWP) refrigerants, such as R454B, R1234ze, and R513A, in their chillers.

TECO’s revenue structure is shifting significantly. While the ratio of residential to commercial air conditioning was previously 6:4, the increase in large-scale office and energy-saving orders has brought it to 5:5 this year. The company expects commercial and data center-related revenue to exceed 60% of its total air conditioning business next year. To support this growth, TECO is establishing a supply chain centered in Taiwan with key hubs in Malaysia and Thailand to serve markets in Northeast Asia, Southeast Asia, the United States, and Australia.