Flex (NASDAQ: FLEX) said this week it has reached a definitive agreement to buy EPC Power for $4.4 billion, folding in differentiated power-conversion and grid-forming technology built for the next generation of 800V data center power architectures. Flex expects the deal to close in the fourth quarter of calendar 2026, at which point EPC Power moves into Flex’s Cloud and Power Infrastructure (CPI) segment — the franchise Flex intends to spin off as an independent public company in the first calendar quarter of 2027, per the Flex announcement.
EPC Power, a California company that traces its roots to 2010, builds a vertically integrated power-conversion stack spanning internal hardware, software and controls across rectifiers, DC-DC conversion, and a roadmap toward solid-state transformers. Flex points to more than 15 GW already deployed across 62 countries, with annual U.S. manufacturing capacity on track to surpass 30 GW in 2027. Flex expects the business to generate roughly $800 million of revenue in calendar 2026, grow organically about 40% in 2027, and expand EBITDA margin by double-digit percentage points toward approximately 30%, again per the announcement. Flex says it will fund the transaction with a mix of debt and equity, backed by committed financing from Citi and Bank of America.
We think the deal is less about the specific parts and more about what it signals. The shift from 48V toward 800V power delivery is one of the more consequential architectural transitions in the AI data center buildout, and power conversion, grid-forming and backup capability have moved to the center of the stack that keeps high-density GPU racks online. Rather than develop that capability organically, Flex is buying it — then spinning the whole power franchise out as a standalone company. That is a bet that power, not just compute and cooling, becomes a defining layer of the AI infrastructure buildout, an area 650 Group has tracked across its AI infrastructure research as power density and electrical design reshape the data center.
650 Group researches several of the technologies we covered in this blog, including Data Center / Co-Location / Cloud, Enterprise, and more.