Flex has announced its intent to acquire EPC Power for $4.4 billion, enhancing its data center infrastructure capabilities. This acquisition includes advanced power-conversion technologies, such as 800V DC and grid-forming systems, at a time when AI data center rack densities are increasing. The deal is expected to close in the fourth quarter of 2026, pending regulatory reviews.
EPC Power specializes in power-conversion solutions for various applications including data centers and microgrids. Its technology is specifically designed for integrating 800V DC loads directly with grid voltages, which can streamline power delivery and reduce dependence on traditional power distribution systems. This advancement is particularly relevant as next-generation AI data centers demand substantial power and efficient power management solutions.
The shift to 800V DC is particularly significant for data center operators as it provides a means to deliver more power with reduced electrical losses and fewer conversion stages involved. This development emphasizes the strategic importance of power conversion technologies in modern data center architecture and infrastructure.
Neil Osnato from Persistence Analytics Group noted that this acquisition reflects a growing recognition of the importance of power systems in AI infrastructure. As AI workloads create greater demands on data centers, the efficiency and control of electrical systems become critical to their operational viability.
EPC Power’s platform can quickly adapt to fluctuations in power demand driven by AI operations. This capability is essential for ensuring stability in power supply, integrating energy storage, and meeting the requirements of modern grid interfaces. Osnato advised that utilities need comprehensive validations of claimed capabilities for these new systems.
Following the deal, EPC Power will expand its manufacturing operations in the U.S., enhancing production capacity significantly. The acquisition positions Flex to advance its power solutions in the rapidly evolving AI data center market, where demand for robust and efficient power management solutions is anticipated to grow.
Flex expects EPC Power to generate around $800 million in revenue in 2026, with projected organic growth of approximately 40% in 2027.
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