Flex has agreed to acquire power conversion specialist EPC Power in a deal valued at $4.4 billion, significantly expanding its exposure to the rapidly growing market for electricity infrastructure serving artificial intelligence data centers.

The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other customary conditions. Flex said it is evaluating financing options and expects to fund the acquisition through a combination of debt and equity.

California-based EPC Power develops power conversion equipment used in data centers, utility-scale energy storage and microgrids. Its technology includes rectifiers and DC-to-DC conversion systems and is being developed for the emerging 800-volt direct-current power architecture expected to underpin increasingly power-intensive AI computing facilities.

EPC Power has deployed more than 15 gigawatts of equipment across 62 countries, according to Flex, while its annual U.S. manufacturing capacity is expected to exceed 30 GW in 2027.

The company is projected to generate about $800 million in revenue in 2026. Flex expects EPC Power's organic revenue to grow about 40% in 2027, while its EBITDA margin is forecast to reach roughly 30%.

The acquisition will place EPC Power within Flex's Cloud and Power Infrastructure business, which Flex plans to separate into an independent publicly traded company in the first quarter of 2027.

That planned spin-off has sharpened Flex's focus on the infrastructure bottlenecks emerging alongside the AI data center boom. The company said in May that the standalone business would concentrate on power and thermal management systems and other infrastructure for AI data centers and mission-critical facilities.

Power delivery has become an increasingly important constraint on AI expansion as computing racks move toward dramatically higher electricity consumption. NVIDIA is promoting an 800 VDC architecture for next-generation AI facilities, arguing that higher-voltage DC distribution can reduce conversion losses, current requirements and the amount of copper needed to supply increasingly dense computing systems.

Flex has already developed an 800 VDC power rack with NVIDIA for its Vera Rubin computing platform, giving the company existing exposure to the transition. Adding EPC Power extends those capabilities farther into power conversion and grid-facing infrastructure.

EPC Power's systems are also designed for grid stabilization and backup power, linking the acquisition to the broader challenge utilities and data center developers face in supplying large, rapidly changing AI loads without compromising grid reliability.