Flex will acquire EPC Power for $4.4 billion, adding 800V DC, grid-forming technology, digital rectifiers, and DC-DC converters to its Cloud and Power Infrastructure segment. The deal is expected to close in the fourth quarter of 2026, with Flex planning to spin off that segment as an independent public company in the first quarter of 2027. EPC Power, which opened a 167,000-square-foot manufacturing facility in Fountain Inn, South Carolina in July with 27 GW of initial annual capacity scalable to 40 GW, is projected to generate about $800 million in revenue during calendar 2026. Flex expects approximately 40% organic revenue growth and an EBITDA margin of around 30% for EPC Power in 2027.
The $4.4 billion price signals that power conversion hardware is becoming a strategic layer in AI data center infrastructure, not just a supporting component, as rack densities and campus power requirements rise. EPC Power's 800V architecture and grid-forming capabilities directly address the challenge of connecting high-density AI loads to the grid more efficiently, and the planned spin-off in early 2027 will create a standalone public company focused entirely on this segment.
A $4.4B acquisition by Flex of EPC Power is a major market-moving transaction directly tied to AI data center power architecture trends, making it highly newsworthy. The 800V architecture angle adds technical significance signaling a broader industry shift.