Flex has announced plans to acquire EPC Power in a transaction valued at $4.4 billion. The deal is expected to close in Q4 2026, after which EPC Power will become part of Flex's Cloud and Power Infrastructure (CPI) segment. Flex intends to separate CPI into an independent, publicly traded company in Q1 2027, meaning EPC Power would be folded into a business that is itself slated for a spin-off shortly after the acquisition closes — a sequencing that makes the deal a bet on the standalone value of data center power infrastructure.

Founded in 2010 and headquartered in California, EPC Power manufactures intelligent power conversion solutions, including utility-scale inverters and platforms for data centers. The data center opportunity is a key attraction for Flex, coming as surging AI workloads drive sharply higher electricity consumption at large computing facilities and push operators to upgrade how power is delivered and converted inside the data hall.

"EPC Power has built a leading position by solving some of the most difficult power conversion challenges through integrated hardware, software and controls," said Jim Fusaro, CEO of EPC Power. "As demand for AI infrastructure accelerates, customers need power systems that are more intelligent, efficient and resilient. Together, we will combine our capabilities and expertise to help customers meet these challenges at scale."

Combined with Flex's existing power, cooling and compute portfolio, EPC Power's capabilities broaden Flex's offering across data center and electrical infrastructure.

"A generational shift in power architecture is underway, driven by rising power density and the changing demands of digital infrastructure," said Revathi Advaithi, CEO of Flex. "EPC Power brings leading power conversion and grid-forming technology that positions us to capitalize on this shift, delivering 800-V power conversion today and building towards solid-state transformers. 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 800-V figure and the reference to solid-state transformers reflect a broader industry move toward higher-voltage direct-current distribution in large facilities, an approach already used in electric vehicles, to reduce conversion losses and cable mass at high power levels. Grid-forming capability, which EPC Power already offers, allows inverters to help stabilize the electrical grid rather than only following it — a feature that has grown more relevant as renewables and other inverter-based resources take a larger share of generation.

Flex has many years of involvement in the energy industry as a manufacturing partner in the inverter and tracker space. The company serves as Enphase's contract manufacturer in the United States for American-made microinverters. Flex was also formerly the parent company of Nextracker (now Nextpower), until the two companies split in 2024. With EPC Power, Flex shifts from primarily a manufacturing partner to an owner of power-conversion intellectual property, in contrast to its contract-manufacturing and past tracker relationships.

Source: Solar Power World