Andacon Starts Armoured Busway Production in Penang for AI Data Center Orders
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Andacon Technology, part of the TECO group, has restored a previously idle factory in Penang and begun volume production of armoured busways for AI data center orders. The move is part of a broader expansion of AI-related manufacturing capacity across Southeast Asia, spanning power-distribution equipment, server materials, PCBs and semiconductor packaging.
- Andacon Technology has started volume production of armoured busways in Penang for AI data center orders.
- The Penang factory was restored from a site that had been idle for nearly two decades; the reported refurbishment-to-production period was about five months.
- Thailand is also attracting AI supply-chain investment, including US$100 million for Jinxiang Electric’s high-end production-line expansion.
- Shenmao Technology expects capacity at its Thailand plant to potentially double after new equipment is installed; this is not yet a completed expansion.
- Localizing electrical and server-infrastructure manufacturing could support faster AI data center deployment, but power-grid readiness remains a potential constraint.
Andacon Technology has begun volume production of armoured busways at a restored factory in Penang, Malaysia, to serve AI data center orders. Andacon is part of the TECO group. According to the source, the site had been idle for nearly two decades before its refurbishment.
The restoration and production ramp took about five months, with work beginning in December and manufacturing starting in April. The source does not specify the calendar years for those milestones, nor does it disclose the capacity of the busway plant, the size or location of the AI data center projects being supplied, or the value of related contracts.
The Penang development is one of the more concrete infrastructure-supply examples within a wider Southeast Asian build-out of AI-related manufacturing. In Thailand, Jinxiang Electric invested US$100 million to expand high-end production lines at Industrial Park 304. Separately, AI server and HPC-related products account for about half of revenue at Shenmao Technology’s Thailand plant. Its capacity could double once new equipment is installed, though this remains an expectation rather than an achieved expansion.
The regional supply-chain build-out also extends beyond power and server components. Malaysia’s Advanced Packaging Consortium, established in 2025, is beginning work with an FC-BGA pilot line. Singapore’s AI Singapore has completed more than 300 projects under its “100 Experiments” programme, with the source reporting that 60–70% progressed to practical deployment.
For data center operators and infrastructure investors, the emergence of local production for busways, PCBs, server materials and advanced packaging could shorten supply chains supporting AI infrastructure deployment across ASEAN. However, manufacturing expansion and increasing data center demand also intensify the importance of grid readiness. The source identifies the ability of Thailand’s power system and supporting infrastructure to keep pace with investment as the next challenge.
The evidence base is limited to one source, and no MW/GW capacity, data center CAPEX, grid-interconnection detail or delivery schedule is provided for the AI data center orders referenced by Andacon.
The development suggests that AI data center growth in ASEAN is beginning to support more localized supply of electrical and server-infrastructure components. This could reduce reliance on external supply chains and improve project delivery responsiveness, although grid and wider infrastructure readiness—particularly in Thailand—may constrain the pace of further investment.
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