Flex has agreed to acquire EPC Power in a transaction valued at $4.4 billion, adding grid-forming power conversion technology to its rapidly expanding AI data center infrastructure portfolio. The deal is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other customary conditions. EPC Power will join Flex's Cloud and Power Infrastructure (CPI) segment, which Flex plans to separate into an independent publicly traded company in the first quarter of 2027. Flex expects to finance the acquisition through a combination of debt and equity. The transaction matters because it extends Flex's reach from manufacturing and systems integration into the physical infrastructure surrounding AI compute, positioning the company to address power delivery as a system-level engineering problem for hyperscale customers.
Founded in 2010 and headquartered in California, EPC Power develops power conversion hardware, software and controls for data centers, utility-scale energy storage and microgrids. Its technology is designed for emerging 800V data center power architectures, with capabilities spanning active digital rectifiers, DC-DC conversion, energy storage, grid-forming controls and a roadmap toward solid-state transformers. EPC Power has more than 15 GW deployed across 62 countries, while its annual U.S. manufacturing capacity is expected to exceed 30 GW in 2027. Its modular platform can scale to 6 MW per system. Flex says the architecture can consolidate functions traditionally handled by separate transformers, UPS systems, protective devices and AC distribution equipment while supplying clean 800V DC power for high-density GPU infrastructure. EPC Power is expected to generate approximately $800 million in 2026 revenue, followed by approximately 40% organic revenue growth in 2027, with EBITDA margin expected to approach 30% in 2027.
The acquisition extends a broader expansion by Flex from conventional contract manufacturing into critical digital infrastructure. EPC Power's conversion technology will complement Flex's existing embedded power, critical power, racks, servers and liquid-cooling portfolio, including JetCool direct-to-chip cooling. Flex says the combined portfolio will extend from the grid interconnect through facility distribution, centralized conversion and rack power delivery to cooling and compute. Flex CEO Revathi Advaithi said, "Together with our existing power, cooling and compute capabilities, this transaction expands our ability to design and deliver digital infrastructure as an integrated system." The strategy also follows Flex's earlier move to acquire Electrical Power Products (EP²) for approximately $1.1 billion to expand critical-power capabilities, indicating a deliberate build-out of power infrastructure assets ahead of the planned CPI spin-off.
For the broader data center sector, the deal reflects the changing electrical architecture of AI infrastructure. NVIDIA's proposed 800V DC ecosystem highlights the difficulty of distributing enormous amounts of power through conventional low-voltage architectures as racks move toward megawatt-class power levels. Higher-voltage DC distribution reduces current for a given amount of delivered power, which can reduce conductor requirements and conversion complexity. Flex has already been developing an 800V DC power rack and associated infrastructure around this transition. The strategy resembles vertical integration occurring elsewhere in AI infrastructure, but at a different layer: hyperscalers increasingly design their own accelerators, networking systems and data centers while relying on specialized manufacturers for power conversion and thermal management. Flex says hyperscale customers that previously handled power, IT and cooling through separate organizations are increasingly approaching those systems holistically.
The evidence base for this analysis is limited to a single secondary source read in full, so several details remain unverified. The dossier does not include Flex's official press release, regulatory filings, or EPC Power's financial statements, and the source text is truncated before completing its discussion of vertical integration. The $4.4 billion valuation, the $800 million 2026 revenue projection, and the 40% organic growth and 30% EBITDA margin expectations for 2027 are all attributed to Flex but not independently corroborated. The financing mix between debt and equity is unspecified. What to watch: whether the deal clears regulatory review in time for the Q4 2026 close, how the CPI spin-off in Q1 2027 affects the integration timeline, and whether EPC Power's 800V DC architecture gains adoption beyond Flex's existing customer base.