• Flex will acquire EPC Power for $4.4 billion, subject to regulatory approvals and customary closing conditions.
• The deal targets a critical constraint on AI expansion: access to fast, resilient and grid-compatible electricity.
• EPC Power will join Flex’s Cloud and Power Infrastructure segment after the transaction closes, expected in the fourth quarter of 2026.

Flex has agreed to acquire power conversion specialist EPC Power for $4.4 billion, expanding its position across data centres, energy storage and grid infrastructure.

The definitive agreement builds on an existing collaboration between the companies. Once the deal closes, EPC Power will operate within Flex’s Cloud and Power Infrastructure segment. Completion remains subject to regulatory approvals and other customary conditions.

The acquisition comes as electricity availability becomes a binding constraint on artificial intelligence infrastructure. AI training and inference systems require dense, highly variable loads. These demands can delay data centre connections and create additional pressure on ageing electricity networks.

From the grid to AI computing

EPC Power designs software-defined power conversion systems for data centres, utility-scale storage and microgrids. Its technology controls how electricity moves between the grid, energy assets and computing equipment.

The company’s 800-volt data centre architecture includes digital rectifiers and solid-state transformers. These systems are designed to improve power delivery for higher-density AI infrastructure. Combined with Flex’s power and thermal management portfolio, the acquisition creates a broader grid-to-chip offering.

EPC Power also supplies Agile Grid Forming technology. It supports on-site storage, microgrids and grid-support configurations for data centres. These installations can help operators bring capacity online faster, manage power fluctuations and continue operating through periods of grid instability.

Utilities could also benefit from improved power quality and greater network stability. That matters as data centre developers compete with industrial users, households and electrification projects for constrained grid capacity.

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Manufacturing expansion supports deal value

EPC Power’s growth has been backed by Goldman Sachs Alternatives and Cleanhill Partners. During the past four years, the company expanded its domestic manufacturing footprint almost tenfold.

“What we accomplished over the last four years demonstrates the power of strong partnerships and a shared commitment to innovation. Together with Goldman Sachs Alternatives and Cleanhill Partners, EPC Power emerged as a U.S. technology leader in power conversion solutions that enable the next generation of data centers, AI computing, and grid modernization. We expanded our domestic manufacturing footprint nearly tenfold, strengthening America’s industrial base and reinforcing the critical role of U.S. innovation in powering the future economy. This is only the beginning of what EPC Power can accomplish,” said Jim Fusaro, Chief Executive Officer of EPC Power.

For policymakers, that expansion connects AI infrastructure investment with domestic manufacturing, energy security and skilled employment. It also reflects growing demand for technologies that can integrate digital infrastructure without weakening grid reliability.

“We first invested in EPC Power in 2021 because we believed power conversion would become a critical enabling technology as renewable generation, grid modernization and digital infrastructure converged. That conviction came well before the extraordinary growth in power demand driven by AI. Since then, we have had the privilege of working closely with Jim, Devin and the EPC team as the company grew, expanded its U.S. manufacturing footprint and created high-quality jobs in the U.S. We are proud to have supported EPC from an early stage and, in its next phase, alongside Goldman Sachs Alternatives as the business entered a new period of growth. Seeing what the team has built over the past five years has been incredibly rewarding, and we believe Flex is the right partner for EPC’s next chapter,” said Ash Upadhyaya and Rakesh Wilson, Managing Partners at Cleanhill Partners.

What executives and investors should watch

The $4.4 billion valuation shows how grid technologies are becoming strategic assets in the AI supply chain. Power conversion, storage integration and load management now influence where data centres can be built and how quickly they can operate.

Executives will need to assess power availability earlier in infrastructure planning. Investors should examine grid connection risk, energy resilience and the emissions profile of incremental electricity demand. Regulators, meanwhile, will face pressure to balance digital growth with reliability and affordability.

Goldman Sachs and J.P. Morgan advised EPC Power and its controlling shareholders. Vinson & Elkins provided legal counsel.

If completed, the acquisition will place Flex deeper inside the convergence of AI, industrial policy and electricity-system investment. Its wider significance rests on whether advanced power systems can support rapid computing growth without transferring unacceptable costs and risks to the grid.