Flex has completed its $4.4 billion acquisition of EPC Power, expanding its portfolio of electrical infrastructure technologies for AI data centers and grid applications. The transaction adds power conversion expertise to Flex’s existing manufacturing and infrastructure operations.

EPC Power develops power electronics and grid-forming conversion technology. These capabilities are relevant to data center energy systems that increasingly require high-capacity electrical interfaces, flexible power architectures and integration with onsite generation or storage.

The completed transaction gives Flex a broader role in the power systems surrounding compute infrastructure. The company will need to integrate EPC Power’s technology and operations as demand grows for electrical systems capable of supporting larger AI facilities.

Analysis

Flex’s $4.4 billion acquisition of EPC Power is part of a broader corporate restructuring that will establish Axiom Solutions International as an independent, publicly traded company focused on AI data center infrastructure. Flex announced plans to separate its Cloud and Power Infrastructure (CPI) business in May 2026, subsequently naming the new company Axiom in September. The separation is targeted for the first quarter of calendar 2027, subject to regulatory, shareholder and other required approvals. Axiom is expected to trade on Nasdaq under the ticker symbol AXM.

Axiom will combine power distribution, power conversion, liquid cooling, compute infrastructure and modular data center systems. The portfolio incorporates capabilities developed through Flex’s acquisitions of JetCool, Electrical Power Products and Crown Technical Systems. EPC Power adds software-defined power conversion and grid-forming technologies, including systems designed to support the transition toward 800VDC architectures for high-density AI computing. The combined portfolio is intended to address electrical infrastructure requirements from utility connections and onsite power systems through rack-level distribution and cooling.

The financial structure of the planned separation is also significant. On October 5, Flex announced a $2 billion convertible preferred equity investment in Axiom, led by General Catalyst and Koch Equity Development, alongside other investors. The investment establishes an initial enterprise valuation of $37.5 billion for Axiom. Flex said the proceeds would help finance the EPC Power acquisition and support Axiom’s balance sheet as it prepares to operate independently. The investment remains subject to closing conditions.

Axiom’s strategy extends beyond supplying individual infrastructure components. At the OCP Global Summit on October 12, Flex introduced prefabricated AI Modules that integrate power, high-density compute and advanced liquid cooling into factory-built systems. Flex said these modular solutions could reduce deployment timelines by as much as 50% compared with traditional construction approaches. This systems-level approach reflects the increasing importance of coordinating electrical, thermal and computing infrastructure as AI rack densities rise.

The planned separation will create two publicly traded businesses with different operating priorities: Flex will retain its broader manufacturing and supply-chain operations, while Axiom will concentrate on digital and electrical infrastructure. Revathi Advaithi, currently CEO of Flex, is expected to become CEO of Axiom.

The principal milestones ahead include integrating EPC Power, closing the preferred equity investment and completing the planned separation in early 2027. The transaction positions Axiom to compete across several infrastructure categories, although its ultimate financial performance will depend on integration execution, customer adoption and the timing of large AI data center deployments.

We’re tracking AI infrastructure and networking developments on Converge Digest.