Flex Acquires EPC Power for $4.4B in Data Center Energy Deal

Flex is set to significantly enhance its data center and renewable energy capabilities with a definitive agreement to acquire EPC Power for approximately $4.4 billion. This strategic move will integrate EPC Power's advanced power conversion technologies into Flex's Cloud and Power Infrastructure business, aiming to create a more comprehensive grid-to-chip power management offering.

The acquisition is particularly timely given the escalating power demands of artificial intelligence infrastructure. EPC Power's proprietary 800-volt data center architecture, featuring digital rectifiers and solid-state transformers, is engineered to deliver highly efficient power crucial for the next generation of dense AI computing environments. This technology is expected to bolster Flex's existing portfolio in power and thermal management.

Beyond data centers, EPC Power brings expertise in Agile Grid Forming technology, vital for energy storage systems, microgrids, and grid stabilization. This capability will empower Flex to offer solutions that help data center operators navigate volatile electricity demands and accelerate power deployment, a critical factor in an era of increasing energy security concerns and grid modernization efforts.

The deal, anticipated to finalize in the fourth quarter of 2026 pending regulatory approvals, will see EPC Power operate under Flex's Cloud and Power Infrastructure segment. This integration promises to unlock synergies and expand Flex's market reach in mission-critical infrastructure solutions. Notably, EPC Power has demonstrated substantial growth, nearly tenfold expanding its U.S. manufacturing capacity over the past four years to meet surging demand from AI, data centers, and grid modernization projects.

EPC Power's growth has been supported by its controlling shareholders, Goldman Sachs Alternatives and Cleanhill Partners. Financial advisory services for EPC Power and its principal shareholders were provided by Goldman Sachs and J.P. Morgan, with legal counsel from Vinson & Elkins. This transaction underscores the significant investor confidence in power conversion technology as a key enabler for both digital infrastructure and the energy transition.

The market for advanced power solutions is experiencing robust growth, driven by the dual forces of digital transformation and the urgent need for sustainable energy management. As data centers consume ever-increasing amounts of power, and the grid faces challenges from renewable integration and demand fluctuations, companies like EPC Power are positioned at the nexus of these critical trends. Flex's acquisition of such a specialized player signals a strategic pivot towards capturing greater value in this high-growth segment of the infrastructure market.