Flex to Acquire EPC Power in $4.4 Billion Deal to Expand AI Data Center Infrastructure Exposure
Flex has agreed to acquire power conversion specialist EPC Power for $4.4 billion, aiming to expand its presence in the growing market of electricity infrastructure supporting artificial intelligence data centers. The deal is expected to close by Q4 2026 and will be funded through a mix of debt and equity. EPC Power specializes in high-voltage power conversion systems used in AI computing facilities, with over 15 gigawatts deployed globally. The acquisition aligns Flex's strategy with the increasing demand for advanced electrical infrastructure as data centers adopt higher voltage direct current (800 VDC) to support energy-intensive AI operations. EPC Power is projected to generate $800 million in revenue this year, and Flex anticipates a 40% organic growth rate in 2027 with an expected EBITDA margin of around 30%. The company plans to spin off its Cloud and Power Infrastructure business into a separate public entity by early next year. Flex's move reflects the growing importance of power delivery as AI computing expands, particularly given NVIDIA’s push for higher-voltage DC systems. This acquisition strengthens Flex’s position in grid-facing infrastructure solutions critical for maintaining reliability amid surging data center energy demands.
Topics: AI Data Centers EPC Power Flex Power Infrastructure