Foxconn said it will take a 10% stake in TECO as part of a share swap and will focus on building data centers around the world, including the U.S.

Teco Electric and Machinery specializes in the manufacture of electric motors. It has also delivered over 700MW of data center projects in Southeast Asia. Foxconn, officially known as Hon Hai Technology Group, is a contract manufacturer specializing in electronics and IT products. It is a major manufacturer of servers.

Apple's main manufacturer Foxconn is betting big on the AI boom, teaming up with TECO to offer an all-in-one solution for building next-gen data centers.