MRCB and TECO Partner to Build AI-Ready Modular Data Centers Across Malaysia

Malaysian Resources Corporation Berhad (MRCB) has signed a memorandum of understanding (MOU) with Taiwan-based TECO Electric & Machinery Co., Ltd. (TECO) to jointly develop, deploy and operationally validate next-generation AI-ready modular data centers in Malaysia. The partnership is designed to support both air-cooled and liquid-cooled cabinet rack platforms, marking a significant step in MRCB's push into high-performance digital infrastructure.

The modular data centers will initially serve as a testbed to demonstrate the technical and commercial viability of TECO's modular technology, with the potential to replicate similar developments across MRCB's extensive landbank in the future. Under the agreement, MRCB will act as the landowner, leasing suitable parcels with existing power supply allocations and managing all local authority submissions and regulatory approvals. TECO, meanwhile, will lead technical execution by supplying advanced modular data center technology, specialized engineering solutions and operational management expertise.

Both companies said they will also explore deployment opportunities through a Design & Build delivery model, which could accelerate project timelines and reduce construction complexity. The collaboration builds on MRCB's previously announced intention to develop a 65 MW AI-ready facility designed for large-scale enterprise workloads, and the new modular initiative underscores the company's broader strategy to scale utilization of its land assets.

“This collaboration with TECO’s expertise in delivering integrated energy-efficient solutions represents another important milestone in MRCB’s strategic diversification into high-performance digital infrastructure,” said Imran Salim, Group Managing Director of MRCB. He added that by integrating TECO’s modular technology with MRCB’s master development and engineering capabilities, the company is expanding its capacity to serve varied market demands while generating long-term recurring revenue and unlocking maximum value from its landbank.

The move comes as demand for AI-ready data center capacity continues to surge across Southeast Asia, driven by rising adoption of cloud computing, machine learning and high-density workloads. Modular data centers offer a faster, more flexible alternative to traditional builds, particularly in markets where power availability and time-to-market are critical constraints. For Malaysia, the partnership adds momentum to the country's ambition of positioning itself as a regional digital infrastructure hub, supported by growing foreign investment in data centers and related technologies.